Trade: WTO Apple Ruling Lifts Barriers For Exports
August 18th, 2010
NZ’s determined pursuit of its rights of access to the Australian apple market has implications for other exports of primary produce which end up being blocked by spurious claims over bio-security. Trade Minister Tim Groser says the WTO ruling helps build the case phytosanitary rules must be based on science. Sheepmeat, kiwifruit and dairy exports could also benefit. The apple stoush has been one of the few points of friction in a trade relationship underpinned by the CER agreement and looks closer to resolution, though Aust will appeal the verdict and can probably stretch the debate out for longer yet.
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Groser says Chinese officials were watching the WTO case “very closely.” While China has its own concerns about crop pests, its seasons are in sync with NZ’s, so apples can be shipped in its off-season. Groser says NZ currently ships only small consignments to China, via Hong Kong and “we want to establish a basis for long-term supply into China.” He says generally the CER framework has worked well and the solid trading relationship with Aust highlights why no formal dispute resolution processes were put in the accord. Hence there was nowhere other than the WTO for the parties to “let off steam.”
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