A WTO dispute panel ruled Japan's fire-blight related quarantine measures imposed on US apple exports were in breach of WTO agreements.

NZ growers believe the ruling sets an important precedent for them as they are kept out of Australian and Korean markets on plant-health grounds because of the disease. Although Japan does not ban New Zealand apple imports, the restrictions that are in place do not make the market commercially viable.

Australia in particular is an important potential market for NZ because of it close proximity and because its population is likely to have similar tastes to New Zealanders, one analyst said.

NZ trade negotiations minister Jim Sutton was reported in the NZ press saying he hopes the decision will result in remedial action not only in Japan but also in other countries with similar fire blight-related restrictions. He apparently added there was no scientific evidence that fire blight has ever been introduced into any area through commercial trade in mature apple fruit.

Both New Zealand and the US made submissions to the panel emphasising that scientific evidence did not support Japanese assertions that trade in apple fruit presented a fire blight risk, and that the various measures Japan had in place to deal with the risk were unjustified.

Japan is now likely to appeal the ruling and change is unlikely to take place until next season for New Zealand. 'However, we are confident about the merits of our case and that the WTO appellate body will uphold the panel ruling,' Sutton was reported in the New Zealand Herald.

Fire blight has spread gradually throughout NZ over the past 80 years. The US took the case to the WTO backed by New Zealand with Australia backing Japan's case.

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