Aussies give up apple fight after WTO ruling

File photo / Supplied

Australia's federal trade and agriculture Ministers say the country has no choice but to accept they have lost the long-running bid to ban imports of New Zealand apples.

The comments follow a World Trade Organisation (WTO) ruling that says Australia's 90-year-old restrictions on New Zealand apples are unscientific and break international rules.

The 24-year-old dispute stemmed from Australia's refusal to let New Zealand apples in for fear of fireblight, a bacterial disease. New Zealand went to the WTO after Australia agreed to remove its ban in March 2007 and implement overly harsh quarantine measures.

The issue is politically charged in Australia, where Victorian apple-growers particularly have led the charge against New Zealand apple imports.

Australian federal Agriculture Minister Joe Ludwig and Trade Minister Craig Emerson have accepted the ruling, saying Australia depended on exports and had no choice but to accept the decision of the independent umpire.

"The government has accepted the decision and will now proceed with a science-based review of the import risk analysis for New Zealand apples. The review will be conducted by Biosecurity Australia,"
they said in a statement.

Trade Minister Tim Groser said New Zealand apples could be exported to Australia as early as next season.

Groser today said the ruling was good news for apple exporters.

"The Appellate Body has confirmed that Australia's objections to New Zealand apple imports are simply not backed by the science," he said.

"We're looking forward to working with Australia to implement the findings through an effective and durable solution on access for New Zealand apples.

"It's good to have the litigation process completed."

Lifting the ban was expected to boost apple exports by $30 million over two to three years.

Groser told Radio New Zealand he was always more worried about substance than time when it came to trade issues.

"It's a very good win for New Zealand and after 80 years, my goodness me, a long time between drinks."

He was confident New Zealand could work with Australia to move forward and ensure they did not find another way of blocking our apple exports."

Groser said he would contact the Australian government on an official level and they would find a constructive way through.

"I hope that the season after this one, we'll start to see some trade take place."

New Zealand has been pushing for access to the Australian market since 1986, and after "exhaustive efforts" took the dispute to the WTO.

The organisation's Appellate Body found in favour of New Zealand in August, but Australia appealed the decision.

In a decision released overnight, the body upheld its original findings that all 16 of Australia's quarantine measures were inconsistent with its legal obligations.

Pipfruit NZ chairman Ian Palmer said he was not surprised Australia had continued to fight hard to keep New Zealand apples out of their country.

"Why wouldn't they? They've done such a good job protecting their industry. They've managed to lobby for a long time - that has come to an end."

Palmer said the two countries still have to negotiate a technical work plan, but expected exports to start by 2012. He believed the market could be worth around $30 million within a short time.

The victory should allow New Zealand to resume apple exports to Australia and clear the way for sales to other markets where the fruit is also banned.

A recent study by Malcolm Bosworth and Greg Cutbrush, two visiting fellows at the Australian National University's Crawford School of Economics and Government, found that the ban had driven up the price of apples for Australian consumers.

The study, backed by the New Zealand apple growers' association, Pipfruit, said Australia had the second most expensive apples in the world, after Japan, and the restrictions had effectively transferred $2.3 billion to Australian growers from consumers between 2001-02 and 2007-08.

- NZPA / BusinessDesk