New Zealand has escalated its ongoing trade dispute with Canada concerning dairy product access.
Todd McClay, New Zealand’s Trade and Agriculture Minister, said Wellington has triggered “mandatory negotiations” under the rules set out by the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
New Zealand and Canada are members of the CPTPP, a trade agreement involving 11 countries. Under the CPTPP’s dispute settlement process, negotiations must begin within 15 days following the notification.
In May 2022, New Zealand filed a complaint against Canada, arguing Ottawa’s implementation of dairy tariff rate quotas (TRQs) under their trade agreement violated the pact’s rules.
In September last year, a CPTPP panel said Canada’s administration of dairy quotas was inconsistent with its obligations under the CPTPP.
As a result, New Zealand exporters were unable to fully utilise Canada’s 16 dairy tariff-rate quotas as priority access is given to domestic dairy processors.
“As a matter of principle, the New Zealand government expects our trade partners to treat our exporters fairly and within the rules of our agreements.
“Canada is not doing that in respect to the dairy quotas that were negotiated and agreed with New Zealand,” said McClay
Commenting on the development, two ministers in Canada put out a joint statement.
Canada’s Trade Minister Mary Ng and Agriculture Lawrence MacAulay said: “Canada is very disappointed that New Zealand has decided to continue to challenge Canada’s dairy TRQ system.
“We have been through this before and have consistently and successfully defended our dairy sector and supply management.”
They were apparently referring to a similar dispute with the United States.
