New Zealand's Prime Minister John Key has assured that the halt in kiwifruit exports, due to fruit fungus, is not revenge. Key is insisting that there is no link between the kiwifruit industry's export problems in China and allegations that Beijing is carrying out a "trade war" with New Zealand.
New Zealand's kiwifruit exports to China are temporarily on hold after the country's border authorities found a fungus on the fruit and issued a warning notice.
That came after claims that China could retaliate against New Zealand's dairy and horticulture exporters in response to a potential investigation into alleged Chinese steel dumping in New Zealand.
"I understand the backdrop of the issue but people should be careful about joining dots," Key told reporters at his weekly press conference on August 8.
Key was asked why China had taken action against Zespri exports at this time, given the fungus had been detected in New Zealand kiwifruit for decades.
"I can't answer that question, I simply don't know," Key said.
The Prime Minister described the Zespri matter as a "technical issue" and an "individual trade issue" which was inevitable in a broad trading relationship.
Trade Minister Todd McClay raised it with his Chinese counterpart Gao Hucheng during trade talks in Laos last week.
"Where there have been claims made about reprisals in relation to our trading relationship with China, we have sought assurances that wouldn't be the case," Key said.
"I think we're comfortable that these individuals trade issues are literally that - individual trade issues, not part of a wider programme of retaliation against New Zealand."
Key said kiwifruit exports to China were expected to resume "quickly', though he did not have a precise date.
New Zealand First leader Winston Peters said New Zealand was now too dependent on China, and the Chinese Government was "telling us what to do".
Peters said the Government should be demanding that China followed international trade rules.
Source: nzherald.co.nz
