Trade ruling offers glimpse of Australian apple market

A World Trade Organisation decision against Japanese restrictions on American apples could open the potentially lucrative Australian market to New Zealand apple growers.

Australia has blocked New Zealand apples from entering its market due to a perceived threat from fireblight disease - a bacteria affecting pear and apple trees.

But a WTO disputes panel ruled yesterday that Japan's restriction on United States apples, on the basis that they may carry fireblight, was wrong.

In its final report, the three-member group found there was insufficient scientific evidence that the type of apples destined for the Japanese market could carry fireblight.

Japan is expected to appeal, but Agriculture Minister Jim Sutton said that if the original decision was upheld, it would be a major breakthrough for local apple growers.

"This would pave the way for access to a market where we have been blocked for 80 years."

Sutton said New Zealand had better natural conditions for growing apples and local growers could command the top end of the Australian market.

He would raise the issue informally with his Australian counterpart when New Zealand ministers met the Australian Government to discuss trade next month.

But he expected no movement from the Australians until the final appeal decision.

If the decision was in the US' favour, he expected Australia would open its market without a major fight, he said.

"I'd hope that we would be able to work out access without taking it all the way to the WTO as a formal dispute."

New Zealand declared a third-party interest in the WTO case on the side of the US, and Australia declared an interest on Japan's side.

American farmers export more than US$390 million ($669 million) worth of apples each year. Shipments to Japan totalled only US$377,000 in 2001 because of fire-blight import restrictions.

New Zealand exported $420.9 million worth of apples last year.

- NZPA