Tim Groser

Wellington, April 14 NZPA - The New Zealand Government appears to be looking for a way to settle the trans-Tasman apple row on a government-to-government basis, in the wake of the World Trade Organisation's a draft decision in favour of access to Australian markets.

"The NZ Govt has been looking at how to negotiate a settlement, based on the WTO's panel interim ruling," the Trans-Tasman political newsletter said today.

The newsletter broke the news of the WTO ruling earlier this week, and the New Zealand victory was confirmed by other sources.

Today the newsletter warned New Zealand may have won its case at the WTO against Australia's barriers to the sale of NZ apples "but no one on this side of the Tasman believes the battle has been finally won".

The two governments were given the draft on March 31, and have 30 days to comment, before a final report is delivered. The process could take up to eight months, followed by negotiations between Australia and New Zealand on any changes to Australia's quarantine plans.

Timing may have been a key issue for the two governments in terms of not releasing the draft ruling, in light of the looming Australian general election.

"Canberra could be wary of unleashing the fury of Australian apple growers in the run-up to the election," the newsletter reported.

Trade Minister Tim Groser is expected to explore what shape a fair and final resolution could take when he talks with his counterpart Simon Crean on the sidelines of the Cairns Group meeting in Punta del Este, Uruguay, early next week, the newsletter said.

Across the Tasman, Australian apple growers have predictably warned imports of New Zealand apples would crush the local industry.

They have also raised questions about whether the ruling could pose a broader threat to Australia's strict quarantine regime.

One orchardist, Alan McLean, told the Bendigo Advertiser that apple imports from New Zealand would put pressure on prices for the big growers that supply supermarket chains.

Mr McLean, who grows 55 hectares of apples, said the fruit could be grown in New Zealand "a lot cheaper than what we do here".