Source: New Zealand Government
Trade and Investment Minister Todd McClay has announced agreement between Canada and New Zealand resolving a long running dairy dispute under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) saying that it will deliver up to $157m per year in export value for New Zealand dairy exporters.
“Canada had failed to meet its obligation to New Zealand in respect of dairy access, today’s agreement means they will now do so,” Mr McClay says.
New Zealand initiated formal dispute settlement proceedings in respect of restrictive access to the Canadian market for dairy exports under the CPTPP in 2022. A dispute panel found in New Zealand’s favour however Canada failed to fully comply with the panel’s ruling. New Zealand threatened further action last year including the imposition of retaliatory tariffs against Canadian exporters.
“We notified Canada of retaliatory action last year unless they met their obligations to us, Mr McClay said.
“The Government is pleased that this dispute has now been settled, and New Zealand exporters are guaranteed better access to the Canadian market,” Mr McClay says
Under the agreement, Canada has committed to making commercially meaningful changes to the way it administers its dairy quotas under CPTPP, including faster and more efficient access to quotas for New Zealand exporters, reallocation of underused quotas, and penalties for importers who misuse quotas.
“The CPTPP is a world leading agreement that unlocks significant opportunities for all parties, but its obligations must be upheld. Today’s agreement reinforces support for the rules-based trading system,” Mr McClay says.
“Canada is a close and long-standing friend and trading partner of New Zealand, and I want to thank them for their constructive engagement in reaching this resolution.”
For more information, go to https://www.mfat.govt.nz/CPTPPCanadaTRQ.
