Press Release: European Commission proposes new import arrangements for New Zealand butter

The European Commission has proposed new arrangements for the import into the European Union of butter from New Zealand. The new system respects the judgment of the European Court of Justice - which in July 2006 ruled the previous system to be discriminatory - and also meets the concerns raised by New Zealand. The new regime, which was drawn up following lengthy consultations with Wellington, will attribute 55 percent of import licences to traditional importers of New Zealand butter and 45 percent to newcomers. It will be proposed to the Council to reduce the in-quota tariff by 19.43% and to modify slightly the butterfat specifications. In a case brought by a German dairy company, the European Court in July ruled the existing arrangements discriminatory, as import licences for New Zealand butter were only issued to subsidiaries of the Fonterra company, which enjoys an export monopoly in New Zealand.