New Zealand Escalates Dairy Trade Dispute with Canada, Initiates Compulsory Negotiations
Source: DairyNews.today
New Zealand has intensified its long-standing dairy trade dispute with Canada by formally triggering mandatory negotiations under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Trade and Agriculture Minister Todd McClay informed both the Canadian government and fellow CPTPP member countries of this escalation early this morning.
The CPTPP’s dispute settlement process requires that compulsory negotiations begin within 15 days of the notification. This latest development follows a September 2023 ruling in New Zealand's favor, which found Canada in breach of the trade agreement by limiting market access for New Zealand dairy exporters. Despite being given until May 2024 to amend its administration of tariff rate quotas (TRQs), Canada has failed to address the issue, prompting New Zealand to take further steps.
"New Zealand takes its obligations under trade agreements seriously," McClay said. "The CPTPP is one of the highest-quality agreements signed by like-minded economies, and it is crucial that all parties uphold their commitments."
McClay emphasized that Canada has not treated New Zealand dairy exporters fairly with regard to the agreed-upon dairy quotas, and urged Canada to meet its obligations. "Canada can end this dispute by complying with its CPTPP commitments. If they continue to choose not to, they owe us compensation," he stated.
Once the negotiations conclude, Canada will have 30 days to resolve the dispute before New Zealand can decide on further action, including potential retaliatory measures. McClay has already informed key stakeholders, including Labour's trade spokesperson Damien O'Connor, about the latest developments.
New Zealand dairy exporters have suffered significant financial losses, estimated to be worth hundreds of millions of dollars, as a result of Canada's restrictive practices. However, the amount of compensation due may not fully reflect these losses.
Minister McClay is scheduled to attend the upcoming G20 ministerial meeting in Brazil next week, where he plans to meet with his Canadian counterpart to discuss the issue further. This dispute has been raised numerous times through official channels and ministerial meetings, but Canada has yet to take corrective action.
"New Zealand takes its obligations under trade agreements seriously," McClay said. "The CPTPP is one of the highest-quality agreements signed by like-minded economies, and it is crucial that all parties uphold their commitments."
McClay emphasized that Canada has not treated New Zealand dairy exporters fairly with regard to the agreed-upon dairy quotas, and urged Canada to meet its obligations. "Canada can end this dispute by complying with its CPTPP commitments. If they continue to choose not to, they owe us compensation," he stated.
Once the negotiations conclude, Canada will have 30 days to resolve the dispute before New Zealand can decide on further action, including potential retaliatory measures. McClay has already informed key stakeholders, including Labour's trade spokesperson Damien O'Connor, about the latest developments.
New Zealand dairy exporters have suffered significant financial losses, estimated to be worth hundreds of millions of dollars, as a result of Canada's restrictive practices. However, the amount of compensation due may not fully reflect these losses.
Minister McClay is scheduled to attend the upcoming G20 ministerial meeting in Brazil next week, where he plans to meet with his Canadian counterpart to discuss the issue further. This dispute has been raised numerous times through official channels and ministerial meetings, but Canada has yet to take corrective action.
