New Zealand Dairy Industry Faces Growing Losses as Canada Violates Trade Commitments
Source: The DairyNews
New Zealand's dairy sector is expressing increasing concerns over financial losses resulting from Canada's continued breaches of trade obligations.
The Dairy Companies Association of New Zealand (DCANZ) is pushing back against Canada's recent proposal to allocate dairy import quotas under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) free trade agreement.
Canada's violations of the agreement were central to a legal case brought by New Zealand, accusing Canada of manipulating quotas to impede exporter access to the market. Despite a successful legal battle, DCANZ Executive Director Kimberly Crewther expressed frustration over Canada's persistence in avoiding compliance with CPTPP obligations and hindering agreed-upon dairy market access.
Crewther stated that Canada's new proposal introduces a complex formula that continues to favor domestic processors, minimizing quota access for distributors, importers, and retailers from CPTPP countries. This contradicts the legal ruling from the previous year, which mandated that Canada must allow importers the opportunity to fully utilize the quotas.
She emphasized that the proposed changes to the administration of dairy tariff rate quotas would further restrict an already stringent import regime. It is estimated that New Zealand dairy exporters have suffered losses amounting to $120 million in trade opportunities during the first three years of CPTPP due to Canada's breaches of its commitments. The ongoing dispute highlights the challenges faced by New Zealand's dairy industry in navigating international trade dynamics.
Canada's violations of the agreement were central to a legal case brought by New Zealand, accusing Canada of manipulating quotas to impede exporter access to the market. Despite a successful legal battle, DCANZ Executive Director Kimberly Crewther expressed frustration over Canada's persistence in avoiding compliance with CPTPP obligations and hindering agreed-upon dairy market access.
Crewther stated that Canada's new proposal introduces a complex formula that continues to favor domestic processors, minimizing quota access for distributors, importers, and retailers from CPTPP countries. This contradicts the legal ruling from the previous year, which mandated that Canada must allow importers the opportunity to fully utilize the quotas.
She emphasized that the proposed changes to the administration of dairy tariff rate quotas would further restrict an already stringent import regime. It is estimated that New Zealand dairy exporters have suffered losses amounting to $120 million in trade opportunities during the first three years of CPTPP due to Canada's breaches of its commitments. The ongoing dispute highlights the challenges faced by New Zealand's dairy industry in navigating international trade dynamics.
