New Zealand’s government is ramping up its dispute with Canada over market access for dairy products.
On Friday, New Zealand’s trade and agriculture minister, Todd McClay, notified the Canadian government and other countries in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) that New Zealand is triggering mandatory negotiations over the dairy dispute.
The world’s largest dairy-exporting country launched the dispute in 2022, arguing the Canada’s allocation of tariff rate quotas (TRQs) for dairy imports was not in line with the rules of the Pacific trade deal, with some of the access given to domestic companies.
Both countries’ governments claimed victory in a September 2023 arbitration panel decision, but New Zealand says Canada has since failed to comply with the ruling.
“Canada can end this dispute by meeting its CPTPP obligations to us. If they continue to choose not to, they owe us compensation,” says McClay.
Under the CPTPP dispute settlement process, negotiations must begin within 15 days of notification.
