New Zealand announced today that it has informed the Canadian government and other members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) that it is commencing mandatory negotiations regarding the country’s dairy dispute with Canada.
Mandatory negotiations, based on the CPTPP dispute settlement process, must begin within 15 days of the notification.
In September last year, a Panel of Arbitrators ruled in favour of New Zealand, finding that Canada had breached its obligations under the CPTPP by blocking New Zealand dairy access to the Canadian market.
Canada had until May to revise its administration of tariff rate quotas. “Canada has failed to comply with the ruling, and under the agreement, the next step is for New Zealand to request formal negotiations,” Trade and Agriculture Minister Todd McClay said.
“New Zealand takes its obligations under trade agreements seriously. The CPTPP is one of the highest quality agreements signed by a group of like-minded economies,” McClay added.
“Parties to the agreement understood the commitments they were making when the agreement was signed, and it is important that they honour them.”
McClay stated that Canada was not treating New Zealand exporters equitably regarding the dairy quotas that had been negotiated and agreed upon by both nations.
“Canada can end this dispute by meeting its CPTPP obligations to us. If they continue to choose not to, they owe us compensation.
“Now, more than ever, it is vital that international agreements and the obligations they contain are honoured. As an exporting nation, New Zealand relies on trade commitments and market access that were negotiated in good faith,” McClay stated.
Canada has been involved in several trade disputes beyond its ongoing issues with New Zealand. Previously, the United States has criticised Canada’s practices for limiting access to its dairy market. In the 1990s, Canada was also involved in a trade dispute where it complained to the World Trade Organization about Australia’s restriction on imports of fresh salmon.