New Zealand, US, and Britain Urge Changes in Canadian Dairy Market Policies
Source: The DairyNews
In a growing international dispute, the United States, New Zealand, and Britain are voicing strong concerns over what they deem as unfair protectionist practices within the Canadian dairy market.
New Zealand has recently scored a victory in a dispute panel, citing "non-conformities" in the Canadian government's handling of dairy product access. This comes after four claims were filed by New Zealand last year under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), accusing Canada of failing to issue adequate tariff rate quotas. These quotas directly impact the access of dairy product makers fr om other CPTPP signatory countries to the Canadian market.
The panel observed that Canada is prioritizing domestic processors, contrary to CPTPP regulations. Additionally, Canada's import notices are not aligned with CPTPP standards, restricting opportunities for dairy product makers from other signatory nations to sell their goods in Canada.
In response, the Canadian government proposed a shift to a quota system based on existing market share. However, the International Cheese Council of Canada warns against this move, arguing that it has negatively impacted small and medium-sized enterprises under the US-Mexico-Canada Agreement (USMCA).
The discontent extends to the United States, wh ere dairy organizations and government officials express disappointment over Canada's dairy trade quotas, alleging a misalignment with the USMCA. Despite a previous ruling in favor of the US in 2022, there is ongoing dissatisfaction, with the US government vowing to continue the fight within the existing USMCA framework.
Meanwhile, Britain has halted two years' worth of trade negotiations with Canada. This decision stems from Canada's reluctance to grant market access for British cheese makers, prompting British negotiators to withdraw from talks. Kevin Yin, a Canadian PhD student in economics at the University of California, warns that the overbearing dairy sector could jeopardize CAN$2 billion of bilateral trade with Britain overnight. The pressure is mounting for Canada to address these concerns and ensure fair access to its lucrative dairy market.
The panel observed that Canada is prioritizing domestic processors, contrary to CPTPP regulations. Additionally, Canada's import notices are not aligned with CPTPP standards, restricting opportunities for dairy product makers from other signatory nations to sell their goods in Canada.
In response, the Canadian government proposed a shift to a quota system based on existing market share. However, the International Cheese Council of Canada warns against this move, arguing that it has negatively impacted small and medium-sized enterprises under the US-Mexico-Canada Agreement (USMCA).
The discontent extends to the United States, wh ere dairy organizations and government officials express disappointment over Canada's dairy trade quotas, alleging a misalignment with the USMCA. Despite a previous ruling in favor of the US in 2022, there is ongoing dissatisfaction, with the US government vowing to continue the fight within the existing USMCA framework.
Meanwhile, Britain has halted two years' worth of trade negotiations with Canada. This decision stems from Canada's reluctance to grant market access for British cheese makers, prompting British negotiators to withdraw from talks. Kevin Yin, a Canadian PhD student in economics at the University of California, warns that the overbearing dairy sector could jeopardize CAN$2 billion of bilateral trade with Britain overnight. The pressure is mounting for Canada to address these concerns and ensure fair access to its lucrative dairy market.
