GENEVA, Jan 21: The World Trade Organisation will set up a panel to rule on a complaint by New Zealand over Australia’s ban on apple exports from its neighbour, trade sources said on Monday.

Australia had blocked a previous request for the WTO’s Dispute Settlement Body to rule on the dispute but since New Zealand renewed its request, the panel was automatically set up in line with the global trade body’s rules.

New Zealand has been trying for more than 20 years to remove the ban, which was imposed by Australia back in 1921, when it was feared the apple disease fireblight might be introduced into the country.

Australia in 2006 indicated that imports from New Zealand could be allowed but the conditions it set were viewed as overly restrictive by Wellington, which decided to bring the case to the WTO. Both sides expressed regret that bilateral negotiations have not proved able to solve the dispute, trade sources said.

The New Zealand government has said scientific studies have shown that the fireblight disease cannot be spread through apples.—AFP