Geneva, Dec. 11 - The World Trade Organization will rule on whether Australia's 86-year ban on imports of New Zealand apples is legal under international commerce law.
New Zealand will ask for the creation of an investigative panel at a meeting of the WTO's dispute body Monday, according to an agenda released Tuesday.
Australia could block the launching of the probe next week, but is prevented under WTO rules from doing so a second time. The dispute body meets again early next year.
The WTO often takes months - and sometimes years - to resolve disputes, but can eventually force countries to change their policies or face retaliatory sanctions.
"Eighty-six years or so seems long enough for New Zealand to wait for access to the Australian market for apples," Agriculture Minister Jim Anderton said earlier this year.
In a statement to the WTO this week, New Zealand cited 17 Australian requirements for apple imports it said were inconsistent with Australia's obligations under international trade law.
The ban was first imposed in 1921 to prevent fire blight - a disease that damages apple trees and reduces their ability to produce fruit - from spreading to Australian trees.
Australia said last year it was investigating seven pests and diseases it fears could enter the country on New Zealand apples. They included fire blight, European fruit canker and an apple leaf-curling midge.
Although the apple issue is an irritant, annual trade between the South Pacific neighbors is worth more than $11 billion. New Zealand says the apple trade in Australia could be worth $2.1 million to $6.2 million a year.
The two countries held talks on Oct. 4 in Geneva in an attempt to hammer out a settlement.
"However, the consultations have failed to resolve the matter," New Zealand said in its WTO submission.