EU Proposes to Suspend New Zealand Butter Trade
Trade Minister Phil Goff has responded strongly to a statement from the European Commission (EC) that it intends to
adopt a regulation suspending New Zealand butter imports with effect from 12 July 2006.
“I am aware that the Commission has to respond to the European Court of Justice decision this week that ruled invalid
certain parts of the European Union (EU) regulation governing New Zealand’s butter imports”, said Mr Goff. “But this is
not an appropriate response.
“Trade ought to continue while the Commission considers – in consultation with New Zealand – what needs to be done to
respond to the court judgment.
"On 11 July 2006 the European Court of Justice issued its decision on a case concerning New Zealand’s dairy trade with
Europe that had been brought against the EC by a German dairy trader.
"The trader, Egenberger GmbH, had initially brought proceedings in a Frankfurt court to challenge the EU regulation that
governs the New Zealand butter quota. One of the challenges was against the requirement that import licences are to be
issued only in the United Kingdom. The Frankfurt court referred several questions to the European Court of Justice
concerning the dairy regulation’s consistency with Community law.
“Obviously the EC has to consider carefully how the court's judgement should be given effect. Stopping New Zealand’s
trade in butter while the Commission thinks about what to do breaches their WTO obligations to New Zealand. That is
unacceptable.
“New Zealand and the EU have a good relationship and a history of consulting closely whenever issues arise in the
trading relationship.
“The EU and New Zealand together negotiated the current market access opportunities for New Zealand butter in the EU
market.
"Given the EU’s international commitments they should review their proposed action immediately and find a way for the
trade to continue while the legal problem is solved.
“I have written to Mariann Fischer Boel, the European Agriculture Commissioner to express our concerns at the serious
implications of this decision for New Zealand. New Zealand officials are in urgent discussions with the EC to determine
how this matter can be resolved as quickly as possible," Mr Goff said.
ENDS