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Zespri accused of abusing monopoly by the US

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Turners and Growers wants access to Kiwifruit export markets

Turners and Growers wants access to Kiwifruit export markets

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Mon, 23 Nov 2009 5:26p.m.
By Duncan Garner

The US administration has gone to the World Trade Organisation (WTO) asking the New Zealand government for a 'please explain'.

The US wants to know why Zespri - the country's single kiwifruit exporter - is being accused of abusing its monopoly by a competitor.

Zespri exports around 2 billion kiwifruit every year from growers throughout New Zealand. But its main rival, Turners and Growers (T&G), is locked out of the export trade.

It must go through Zespri if it wants to sell outside of Australasia, and T&G claims Zespri is exploiting that dominance.

"We believe that it's abused that monopoly, and the Zespri monopoly should end," says Tony Gibbs, T&G chairman.

So T&G has taken Zespri to court, alleging anti-competitive behaviour in the $800 million kiwifruit trade.

But the spat has now gone all the way to the White House. The US has issued a 'please explain' at the WTO, and obtained by 3 News.

It reads: "We request that New Zealand please provide information on why a key player in the New Zealand kiwifruit industry had to file legal proceedings in relation to collaborative marketing arrangements."

It continues:

"We request that New Zealand please expand on the court documents alleging anti-competitive behaviour and abuse of Zespri's dominant position."

"Here we are looking for free trade, and here we have the world's last monopoly," says Mr Gibbs. "I think it's a good question that begs a proper answer."

New Zealand is currently negotiating a free trade agreement with the US, but former Trade Minister Phil Goff says the US is bordering on hypocrisy by questioning the set-up here.

Zespri wouldn't comment on the US's questions - it continued to say the legal action against it is a publicity stunt.

Current Trade Minister Tim Groser says the Government will answer the US questions before the next WTO meeting in January, but he says he is not surprised the US is interested given the publicity surrounding the court case.

Mr Groser says Zespri's dominant position is likely to remain as long as the majority of kiwifruit growers continue to support it.

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Comments [4]

Drew
24 Nov 2009 4:24p.m.

Well, Mr. Gibbs has shown his true colours! He is so determined to win at any cost that he will even collaborate against New Zealand's national interests in league with a foreign power. Maybe we could politely suggest that he go home seeing as New Zealand is not that important to him.

One day his epitaph will read "Here lies the man who single handedly reduced one (and perhaps 2) of New Zealands key industries to penury and ran 1000's of hard working kiwis off their land."

Mr Gibbs, although I know this will fall on deaf ears, I plead with you stop, and consider, that this country that I love has gone from a highly educated, skilled and wealthy, paradise to a basket case heading for 2nd and 3rd world status in a little over a generation because of idealogues like you. The "trickle down" has not happened and we are left with a low skilled, underemployed, dependent population. The kiwifruit industry is one of the few wholey kiwi owned industries that has a chance of growing and bringing wealth into this nation and you want to pull it down. It has grown rapidly for a decade now and yet because you can't control it you want to destroy it? What are you hiding at Turners/Enza that you need to sidetrack shareholders with this battle? Can't you build your own business instead of pulling down others? Surely sir with over $400million of assets you can make some money for yourself and your investors without destroying the livelyhoods of others?

I hope you fail in your bid because otherwise New Zealanders will pay for your ego for generations to come.

Marty
24 Nov 2009 10:40a.m.

While I am a supporter of single desk, this doesn't mean Zespri is the shining light. If nothing else, the Turners bid could shake the tree and improve the growers lot

Tommy Tomai
23 Nov 2009 11:39p.m.

Why is Amearica the self-imposed leader of the world? Why should we listen to that Oligarchy, when they themselves have mutiple monopolies that actually influence society, and not in a good way. Zespri is doing no wrong and I think Turners and Growers should suck it up and go back to the drawing board.

Wayne Mason
23 Nov 2009 8:36p.m.

Tony Gibbs should mind his own business & stop trying to bugger up another working set up so he can make more money for himself .

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