EU agrees WTO butter procedure

The European Community has agreed to collaborate in the World Trade Organisation dispute settlement procedure on the New Zealand spreadable butter issue. The EU has consistently blocked attempts by New Zealand to deliver spreadable butter to the European market within its 77,000 tonne GATT preferential tariff quota, arguing that spreadable has a different chemical composition from ordinary butter and is therefore not eligible for preferential access. But the New Zealand government argues that there is no difference and that access should therefore be permitted.
The EU agreement to collaborate means that a disputes panel will now be set up to consider the cases. A verdict is expected by summer.