Home > EU butter trade halt has Fonterra up in arms

EU butter trade halt has Fonterra up in arms

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DAIRY giant Fonterra said a decision to suspend all NZ butter imports to the European Union is extraordinary.

The European Commission has halted the butter trade while it considers a court decision that invalidates parts of New Zealand’s market access agreement to Europe.

The move comes after the European Court of Justice decided the EU regime for importing New Zealand butter was illegal, because it discriminated against firms outside of Britain.

Fonterra chairman Henry van der Heyden said the European Court of Justice has decided the Commission made a mistake in drafting its dairy trade rules.

Van der Heyden said the situation should be fixed, and halting trade while deciding its next move is ridiculous.

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