Zespri Green

New Zealand kiwifruit marketer Zespri has accused Guinness Peat Group (GPG) and its fresh produce export subsidiary Turners & Growers (T&G) of colluding with the US government in order to win support for its campaign to have Zespri's single-desk export status dismantled, it has emerged.

Reports in the New Zealand press this morning revealed that kiwifruit Zespri chief executive Lain Jager wrote to the country's Trade Minister Tim Groser in late September, accusing GPG and T&G of approaching US Embassy staff in New Zealand in order to help push forward its legal challenge.

Quoted in the New Zealand Herald, Mr Groser said he had received two letters from Zespri chief executive Lain Jager, but ruled out a government investigation into the allegations.

'This is a commercial dispute dressed up in policy terms,' he commented, adding: 'Basically, what is going on here, is having failed to persuade the growers, having failed to persuade the Government - the allegation is they are attempting to persuade other governments.'

Refuting the allegation that T&G executives had met with US Embassy officials in order to win support for a campaign against Zespri's export monopoly, T&G chairman Tony Gibbs called the notion of his company influencing the US stance at the WTO as 'ridiculous'.

In a statement released to the industry today, Mr Gibbs said that Zespri's claims were 'typically hysterical', and that the move was a smokescreen put up by Zespri in order to avoid questions on its monopoly status, its practices and its performance.

'The last thing Zespri wants to do is debate free trade,' he said, while also questioning the comments made by Mr Groser.

'I can't understand why a minister who purports to be a champion of free trade would say that, unless it's an attempt to avoid the real issues,' he added. 'The key questions to be answered are: Is New Zealand committed to free trade or not? Is NZ committed to open or competitive markets, or not? Does the New Zealand economy desperately need productivity growth and innovation, or not?'

The New Zealand government is expected to provide more details about Zespri's single-desk status and the current domestic legal action being brought by T&G during a meeting of the WTO working group on state trading enterprises next January.

Meanwhile, Zespri has said it is focused on ensuring a successful finish to the New Zealand kiwifruit selling season and will not become publicly engaged in the detail of trade policy issues reported in the domestic media this week.

A spokeswoman for Zespri, Carol Ward, confirmed that earlier this year unsolicited information had come to the company’s attention which suggested efforts were underway to compromise the New Zealand Government’s trade policy.

'Zespri was concerned that the activities that had come to our attention were unhelpful to New Zealand’s national interest and international relations and the Minister has confirmed that,' she commented.

'As he has said, it appears that Turners & Growers, having failed to convince New Zealand kiwifruit growers or the New Zealand Government of the merits of its case, has now turned to seeking to work with foreign governments,” she continued.

She added: “Zespri is grateful for the Minister’s assistance and for his public reconfirmation of the New Zealand Government’s policy that it will support Zespri and our single point of entry (SPE) marketing arrangements for as long as they have the support of growers.

Given the commercial and diplomatic sensitivities of such matters, Ms Ward said it would not be appropriate for the company to provide more detailed public comment.