NZ Takes Kiwifruit Monopoly To Indian Free Trade Talk

29 June 2011


NZ Takes Anti-Competitive Kiwifruit Monopoly To Indian Free Trade Talks

“Every other country in the world has agreed to abandon State-backed monopolies for agricultural exports because they are unfair, wrong and bad for business – in fairness to Indian consumers and all New Zealand kiwifruit growers and exporters, kiwifruit must be traded freely and fairly.” – Tony Gibbs, Turners & Growers.

New Zealand’s leading horticulture company, Turners & Growers is welcoming progress in Free Trade talks with the Indian Government but says as part of deal, the Indian Government will rightly be investigating barriers to trade and investment like New Zealand’s anti-competitive export monopoly on Kiwifruit.

And in an ironic twist the New Zealand Government has taken representatives from the world’s last remaining statutory monopoly, Zespri as part of their free trade delegation to India.

The New Zealand Government is facing questions over whether it has misled the World Trade Organisation about Zespri’s kiwifruit export monopoly. Tony Gibbs says the Indian Government will have noted that the OECD recently identified Zespri’s anti-competitive export monopoly over all New Zealand kiwifruit as one of the barriers to trade and investment that the New Zealand Government must fix.

Zespri is a private New Zealand company with a monopoly giving it control over all Kiwifruit exports, except those to Australia, while other New Zealand companies like Turners & Growers are banned from exporting New Zealand grown kiwifruit. Any company breaking the ban faces a fine of $50,000.

Turners & Growers and its global ENZA brand are working to achieve free and unrestricted trade access for all New Zealand grown kiwifruit to world markets, including the world’s first commercialised red kiwifruit, ENZARed and their ENZAGold and Summerkiwi varieties.

Tony Gibbs says that genuine supporters of free trade will see the irony of the New Zealand Government taking Zespri, on the 'free trade' trip to India.

“As the next rounds of the FTA discussions progress, Prime Minister Key and Trade Minister Groser should be asked by their Indian colleagues what exactly Zespri, as a Government supported private monopoly, which is anti-competitive and anti-free trade can contribute to the Free Trade process.

“As a country we either believe in Free Trade or we don’t. Honesty and integrity has always been a hallmark of this country on the world stage and we must walk the talk. There is no justification for New Zealand’s backward-looking protectionist kiwifruit monopoly.

“Should the Government secure better access for New Zealand producers to the Indian markets there will be many businesses that will want to take advantage of the opportunity. But among all New Zealand businesses, it’s only kiwifruit growers that will be forced to export to India exclusively through a privately owned monopoly.

“The Prime Minister is right, the opportunities in the Indian markets for New Zealand producers are ‘incredible’. Turners & Growers is already working in India as a growth market for New Zealand horticultural products on a free and fair competitive basis. Turners & Growers, through its ENZA and Delica companies already exports New Zealand grown apples, strawberries and blueberries to India and is expecting to begin Cherry exports later this year.” ENDS

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