Advance Australia fair? Anatomy and pathology of an 84-year trade dispute

Abstract

This paper examines the very long-running trade dispute between Australia and New Zealand concerning a ban on the importation of apples on the basis of fire blight disease present in New Zealand. This particular example illustrates the more general case of the frequent conflict between science and politics in regard to technical trade barriers. This same issue of fire blight disease in apples became the subject of a protracted World Trade Organization dispute between the USA and Japan, with New Zealand a third party to the USA, and Australia a third party to Japan. The World Trade Organization Dispute Settlement Body, and subsequently the World Trade Organization Appellate Body, ruled in favour of the USA (and thus New Zealand) on this issue. Despite this ruling, Australia has continued its ban on New Zealand apples and the issue has become highly politicized in Australia.

This case highlights the need for World Trade Organization rules to be changed to ensure that its rulings become binding on third parties and other World Trade Organization members. This would ensure that once an issue is decided through the full World Trade Organization conflict resolution process, the principles established should become generally applicable to other instances of the same scientific issue.