Canada To Honour Dairy Access Under CPTPP Dispute Agreement
Source: dairynews.today
Canada and New Zealand have reached an agreement on the dairy market access dispute under CPTPP, potentially increasing New Zealand’s export value by $157 million annually.
Trade and Investment Minister Todd McClay announced a settlement between Canada and New Zealand resolving the long-standing dairy dispute under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
It is expected to generate up to $157 million per year in export value for New Zealand dairy exporters. New Zealand had initiated formal dispute settlement proceedings in 2022 due to restricted access to the Canadian dairy market. Although a dispute panel ruled in New Zealand’s favor, Canada had yet to comply fully. Last year, New Zealand threatened retaliatory tariffs against Canadian exporters.
Mr. McClay stated, "Canada had failed to meet its obligation to New Zealand in respect of dairy access, today’s agreement means they will now do so." Under the agreement, Canada commits to significant changes in administering dairy quotas including faster access, reallocation of underused quotas, and penalties for misuse. Mr. McClay emphasized, "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."
Canada remains a valued partner within the global trading framework.
It is expected to generate up to $157 million per year in export value for New Zealand dairy exporters. New Zealand had initiated formal dispute settlement proceedings in 2022 due to restricted access to the Canadian dairy market. Although a dispute panel ruled in New Zealand’s favor, Canada had yet to comply fully. Last year, New Zealand threatened retaliatory tariffs against Canadian exporters.
Mr. McClay stated, "Canada had failed to meet its obligation to New Zealand in respect of dairy access, today’s agreement means they will now do so." Under the agreement, Canada commits to significant changes in administering dairy quotas including faster access, reallocation of underused quotas, and penalties for misuse. Mr. McClay emphasized, "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."
Canada remains a valued partner within the global trading framework.
