WTO Says Australian Ban on New Zealand Apple Imports Breaks Trade Law
Australia should lift a ban on apple imports from New Zealand dating back to 1921 to satisfy global commerce rules, the World Trade Organization said.
Australia barred apple imports after discovering in 1919 the bacterial disease fire blight in fruit from New Zealand. While Australia agreed in March 2007 to end the ban, it imposed strict quarantine curbs such as disinfection treatments and orchard inspections that New Zealand called “scientifically unjustified.”
New Zealand lodged a WTO complaint five months later, saying the restrictions were a barrier to trade. The ruling is a clear win that “settles any debate,” Trade Minister Tim Groser said in an e-mailed statement.
WTO judges agreed with most of New Zealand’s arguments and said in a report released today on the Geneva-based trade arbiter’s website that Australia should “bring the inconsistent measures into conformity with its obligations.”
Australia is disappointed with the decision and intends to appeal, Agriculture Minister Tony Burke said. The government is committed to maintaining the integrity of the nation’s quarantine regime, he said in an e-mailed statement.
New Zealand exporters such as Turners & Growers Ltd. shipped about NZ$410 million ($299 million) of apples overseas last year -- about 1 percent of total exports -- and trade with Australia may initially be worth as much as NZ$40 million, according to media reports. Exports make up about 30 percent of New Zealand’s economy.
The South Pacific country has been lobbying to have the ban lifted since 1986, based on its assertion that commercially traded apples don’t carry fire blight.
Fire blight is a bacterial disease that attacks apple and pear trees as well as rose bushes, giving branches and blossoms a burnt appearance. The bacteria can stop fruit from growing and in severe cases can kill the affected tree.
To contact the reporter on this story: Jennifer M. Freedman in Geneva at jfreedman@bloomberg.net.
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