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Government To Manage Quota After Deregulation

The Government will manage the country-specific quota for New Zealand apple exports to Taiwan from October 1 this year, Trade Negotiations Minister Jim Sutton said today.

He said Cabinet had endorsed a proposal to impose an export prohibition order on apple exports to Taiwan. The export prohibition order would be in place from October 1 this year till Taiwan joined the World Trade Organisation. The quota would be abolished when that happened.

New Zealand has an 8,000 tonne country-specific tariff quota for apples going into the Taiwanese market. At present, ENZA is the only New Zealand exporter recognised by the Taiwanese government to export under this quota. The quota runs from 1 January to 31 December, and is normally filled.

Under the proposal approved on Monday, ENZA will continue to be the only exporter of New Zealand apples into Taiwan for the rest of this year.

From next year, export rights to Taiwan will be granted by the Minister of Agriculture. These rights will be allocated by the drawing of lots.

Mr Sutton said that allocating the export rights by drawing lots was the fairest way to distribute access to a lucrative market.

"This system will not be necessary once Taiwan joins the World Trade Organisation and abolishes the quota as part of that accession process.

"Taiwan will join the World Trade Organisation after China does. I am hopeful that both China and Taiwan will become members later this year."

Ends


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