New Zealand plans to take its closest ally Australia to the World Trade Organisation (WTO) over a 21-year dispute about access for apples, the New Zealand government said on Monday. New Zealand had tried to resolve the issue bilaterally but had faced continued delays, Trade Minister Phil Goff and Agriculture Minister Jim Anderton said in a statement.
"We have said that if the bilateral route could not deliver commercially meaningful access for our apples, then WTO dispute settlement would be the only option left. Regrettably, we have now reached that point," they said.
Australia has banned the import of New Zealand grown apples for 86 years, claiming they might carry a bacterial disease called fire blight that is not present in Australia.
However, New Zealand has disputed the scientific basis of the ban, claiming it is more aimed at protecting Australian apple growers, and has tried since 1986 to have it lifted. Australian Trade Minister Warren Truss said he was disappointed at the New Zealand decision and defend its quarantine-based system.
The WTO in 2003 ruled against Japan on a similar ban it imposed on the import of United States apples. New Zealand and Australia have had a free trade agreement since 1983, with two-way trade worth about NZ$16 billion ($11 billion).