Kiwifruit export halt 'not revenge'

John Key
John Key
Prime Minister John Key says he has been assured by China that a halt to imports of kiwifruit is the result of a "technical issue" rather than any alleged reprisals.

Kiwifruit marketer Zespri said last week that it had temporarily deferred exports to China after authorities found a fungus on the fruit and issued a "warning notification".

The one-week halt to exports comes after talk that Beijing could be preparing reprisals against Kiwi primary industry exporters in response to a possible investigation by local officials into alleged Chinese steel dumping.

Speaking to Radio New Zealand this morning, Key said the Government was concerned whenever a New Zealand company was having problems with its exports, especially because China was Zespri's largest market.

"The assurances we've had, and we accept them, is that it is very much a technical issue that they do see," he said.

"So they've voluntarily stopped the exports for a week. The rot apparently is there. There isn't a dispute actually, on the Zespri side."

The same problem had previously occurred with apple exports, he said.

Key spoke to Trade Minister Todd McClay last night and said he understood that exports would resume "quickly", though he did not have a precise date.

The Prime Minister reiterated that there was no link between the export problems and the talk of reprisals.

"I know people want to join dots on other issues but [Zespri] doesn't believe that to be the case."

Key also reaffirmed his support for McClay over his handling of the matter.

The Trade Minister apologised to Key after making misleading statements when the trade issue first arose.

McClay had initially told reporters that he had been briefed about the issue the previous week and had been assured there were no threats of retaliation from China.

He later revealed that discussions had been going for several months.

McClay's handling of the issue prompted Labour leader Andrew Little to call for his resignation.

Key said he would not have expected the minister to offer his resignation.

The Trade Minister had told the truth when answering reporters' questions, he said, but had been "very specific" in the answers that he gave.

 

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