NZ threatens WTO action on Tasmania's apple import ban

The federal government is putting pressure on Tasmania to allow imports into the state of New Zealand apples. The state's ban risks jeopardising Australia's $30 billion of global exports of beef, wheat, wool and other foods and rural products under World Trade Organisation free trade rules. New Zealand apple grower organisation Pipfruit NZ wants its government to retaliate against Australia if its apples continue to be blocked from Tasmania. It is also pushing for a legal case at the WTO, arguing Australia is breaching its free trade deal with New Zealand on unimpeded access for agricultural goods. Tasmania's Acting Premier and Primary Industries Minister Bryan Green admitted yesterday he had discussed Tasmania's position on New Zealand apples with the federal government "on a number of occasions".

But he said he did not believe a federal government High Court challenge to Tasmania's ban - testing the power of the commonwealth to control the states - was being considered. No other state has yet mirrored Tasmania's stance and openly defied the federal government's approval of New Zealand apple imports, despite murmurings late last year from South Australia. Four months ago Australia gave the green light to New Zealand apple imports for sale after insisting on strict quarantine controls and inspections to keep out the fire blight bacterial disease. The 90-year ban on New Zealand apples was only lifted after a successful application by New Zealand to the WTO. A second ban by Tasmania could be interpreted as Australia refusing to abide by, or even deliberately flouting, its free trade agreements. Peter Beaven, chief executive of Pipfruit NZ, said four WTO cases against countries that tried to ban New Zealand apples had all been won, because it was found the imports posed no risk.

Mr Beaven predicted Tasmania's go-it-alone stand would "create issues" between New Zealand and Australia. A spokeswoman for federal Trade Minister Craig Emerson said last night New Zealand could only retaliate against Australian imports if free trade rules had been broken. In 2010, Australia exported $11.4bn of goods and services across the Tasman; a trade that could suffer if New Zealand retaliated against Tasmania's ban. Mr Green yesterday denied a black ban against New Zealand apple imports was in place, but said Tasmania would not be changing its stance. Mr Green claimed his government had blocked New Zealand apples to protect local apple growers, because it was not convinced the risk of fire blight had been eradicated. A spokeswoman for federal Agriculture Minister Joe Ludwig said it was "up to the Tasmanian government to make that call".

It is up to the New Zealand government whether or not it takes retaliatory action if it thinks Australia has breached its World Trade Organisation commitments. John Lawrenson, chairman of grower organisation Apples and Pears Australia, said he did not know if the Tasmanian ban was grounds for a legal challenge by New Zealand against Australia under WTO rules. "But I do support any action by growers that will help protect them from fire blight or any other disease." Australian Greens leader and Tasmanian senator Bob Brown endorsed the Tasmanian ban, arguing the New Zealand apples posed a disease risk.

Source: theaustralian.com.au