Australia loses WTO apple appeal

File photo / Supplied

An Australian appeal to the World Trade Organisation (WTO) against a ruling it must accept our apple exports has failed.

WTO judges have rejected the appeal, saying the 89-year-old ban on New Zealand apple imports is illegal.

The decision may force Australia to open its market or face possible retaliation.

A WTO panel concluded in August that Australia should lift the ban on apple imports, which has been in place since 1921 to prevent the bacterial disease fire blight from spreading.

Judges in Geneva have backed that decision today, saying Australia should bring its measures into conformity with its obligations.

Should Australia refuse to bring its measures into line with WTO rules, New Zealand could strike back by imposing punitive import duties on Australian goods.

Pipfruit NZ chairman Ian Palmer said he was not suprised 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.

Trade Minister Tim Groser also welcomed the ruling, saying it was good news for New Zealand apple exporters.

"The appeal report upholds the thorough analysis undertaken by the WTO dispute Panel around risk assessment and the science at issue. These findings - reached by independent external arbiters - settle any debate," said Groser.

The Panel found in August all 16 of Australia's quarantine measures, along with their Import Risk Analysis, were inconsistent with Australia's legal obligations under the WTO Sanitary and Phytosanitary Agreement.

On a subsidiary issue - whether there were less trade restrictive measures available to Australia - the Appellate Body overturned the Panel's decision on technical grounds. But this does not weaken the central findings around risk assessment and the science.

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

Australia is now under an obligation to bring its measures into conformity with its WTO obligations.

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

"It's good to have the litigation process completed. Now we can work together on implementation."

- WITH NEWSTALK ZB