New Zealand Dairy Industry Calls for Fair Play in Trade with Canada
Source: The DairyNews
New Zealand's dairy processors are pressing the Canadian government to adhere to its trade commitments under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
This demand comes in the wake of Canada's decision to allocate most of its dairy import quotas to domestic processors, a move seen as limiting market access for CPTPP countries.
The Dairy Companies Association of New Zealand (DCANZ) has criticized Canada's approach, aligning with the New Zealand government's position that Canada has replicated unfavorable practices previously ruled against by a dispute panel. According to DCANZ Executive Director Kimberly Crewther, the New Zealand dairy industry has faced substantial losses due to Canada's non-compliance with trade rules, estimating over $120 million in missed trade opportunities within the first three years of the CPTPP.
Trade Minister Todd McClay emphasized that New Zealand remains firm in its resolve to address these trade discrepancies. Following a decisive ruling by a CPTPP arbitration panel in favor of New Zealand, Canada was given a deadline until May 1 to revise its quota administration practices. McClay has sought urgent legal advice on potential next steps, highlighting that Canada still has an opportunity to fulfill its obligations under the CPTPP.
The situation is further complicated by concerns that Canada is not only limiting market access but also increasing its dairy exports under government subsidies, potentially contravening World Trade Organization (WTO) rulings. Crewther warned that this could jeopardize up to a billion dollars of New Zealand dairy protein exports globally, urging Canada to respect both the spirit and substance of international trade agreements.
The Dairy Companies Association of New Zealand (DCANZ) has criticized Canada's approach, aligning with the New Zealand government's position that Canada has replicated unfavorable practices previously ruled against by a dispute panel. According to DCANZ Executive Director Kimberly Crewther, the New Zealand dairy industry has faced substantial losses due to Canada's non-compliance with trade rules, estimating over $120 million in missed trade opportunities within the first three years of the CPTPP.
Trade Minister Todd McClay emphasized that New Zealand remains firm in its resolve to address these trade discrepancies. Following a decisive ruling by a CPTPP arbitration panel in favor of New Zealand, Canada was given a deadline until May 1 to revise its quota administration practices. McClay has sought urgent legal advice on potential next steps, highlighting that Canada still has an opportunity to fulfill its obligations under the CPTPP.
The situation is further complicated by concerns that Canada is not only limiting market access but also increasing its dairy exports under government subsidies, potentially contravening World Trade Organization (WTO) rulings. Crewther warned that this could jeopardize up to a billion dollars of New Zealand dairy protein exports globally, urging Canada to respect both the spirit and substance of international trade agreements.
