WTO ruling favours NZ top fruit

New Zealand apples could soon be heading for Australia and Japan

New Zealand apples could soon be heading for Australia and Japan

The New Zealand Herald reported this morning that the New Zealand apple industry is in line for a NZ$50 million boost following a decision by the World Trade Organisation.

The WTO rejected Japan's appeal against a ruling that its quarantine restrictions on apples were inconsistent, which moves the NZ industry a step closer to getting access to Australia and Japan.

New Zealand was a third party in the dispute, originally raised by the US, and made submissions to the WTO panel.

“Apples from New Zealand and the US have historically been excluded from Japan and Australia because of fireblight,” said the report. “The virulent disease is present in the US and New Zealand but not Japan and Australia. The US and New Zealand successfully argued that there was no proof that fireblight could be spread by the apple fruit itself.”

Pipfruit Growers chairman Phil Alison told the Herald. "The decision is important for New Zealand's access to Australia."

Alison added the NZ industry has been hampered in gaining permission to export to Australia, but the new ruling could pave the way to new trade deals.

Apple exports from New Zealand amounted to worth NZ$474m last year. And top-fruit experts conservatively estimate that New Zealand could initially export 500,000 trays a year to both Japan and Australia, giving the industry an immediate 10 per cent boost in returns.

The opportunity could see a reduction in shipments to continental Europe, although there is little indication that the UK market will be affected in the short term.