WTO backs U.S. apple growers

Ruling against Japanese restrictions could benefit Washington state

Japan has used unwarranted scientific restrictions to illegally bar imports of U.S. apples, the World Trade Organization found Thursday in a ruling that could be worth more than $143 million annually to American growers.

That’s big news for Washington, the largest apple-producing state in the nation. Although officials don’t see an immediate impact for the state, they were optimistic about the long-term outlook.

A WTO dispute panel had found in December 2003 that Japan’s restrictions on U.S. apples violated international trade agreements, but it gave the Japanese additional time to make changes.

Thursday’s ruling struck down the revised regulations, saying they still violated international trade rules and that there was insufficient scientific evidence to justify them.

The ruling, which Japan can still appeal, opens the door for the United States to impose punitive tariffs on Japanese goods. The United States has asked the WTO for the right to impose $143 million in sanctions, the amount American growers are losing as a result of the limits.

Japanese officials have said the restrictions were needed because they fear U.S. apples carrying a bacterial infection known as fire blight could infect Japan’s domestic crop.

“This is a solid victory for the U.S. apple industry,” said U.S. Trade Representative Rob Portman. “ Japan has unfairly used unscientific restrictions to block U.S. apple exports for years.”

Japanese officials said they were disappointed.

“We are still thinking how now to proceed,” Makiko Oshima, a Japanese trade official, told The Associated Press.

U.S. Agriculture Secretary Mike Johanns said the ruling was an important breakthrough because science-based regulations would now be the standard when it comes to global agricultural trade.

“When American producers have a level playing field, the high quality and reliability of their products sell themselves,” Johanns said.

The president of the Washington State Apple Commission, Dave Carlson of Wenatchee, said Japan could eventually become a major market for American apples.

“The WTO ruling is an important step, but whether it affects us immediately depends on what protocols are set,” Carlson said. “We could have some success in the next two or three years, but it could a longer range thing.”

Carlson said the ruling was also important because Australia, New Zealand and South Africa have all raised concerns about fire blight.

Republican Rep. Doc Hastings of Pasco, whose congressional district includes most of the state’s orchards, said the WTO ruling was a “hard-fought” victory for growers.

The ruling “will help end unfair Japanese trade restrictions imposed on U.S. apples and will aid efforts to end similar unwarranted restrictions around the globe,” Hastings said.

While officially Japan’s market has been open to U.S. imports, for more than 20 years the fire blight restrictions have effectively barred American apples.

The Japanese restrictions had required that U.S. apples headed for their markets be grown in special orchards surrounded by buffer zones, that the orchards be inspected and that U.S. apples be treated with chlorine.

Fire blight can affect apples, pears and roses, but is not harmful to humans. The infection, carried by insects, rain and wind, can cause the trees to die and is widespread in the United States.

The United States had maintained American apples posed no risk to Japan’s growers and charged that the restrictions violated international trade rules.

The WTO panel concluded there was no scientific evidence to support the restrictions, they were not based on a risk assessment and were more trade-restrictive than necessary.

Three fast Apple facts

We’re No. 1: Washington growers produce six of every 10 apples consumed in the United States. They also supply markets around the world.

How many: Workers harvest more than 3 billion Washington apples by hand each fall.

Store selection: Nine Washington apple varieties are consistently available in stores – Jonagold, Red Delicious, Golden Delicious, Gala, Fuji, Granny Smith, Braeburn, Pink Lady and Cameo.

Source