ExportNZ has confirmed the conclusion of a protracted trade dispute involving Canada’s dairy quota restrictions. The disagreement, which lasted several years, tested compliance with the CPTPP agreement. Access conditions for New Zealand dairy exporters will now improve.
Final Agreement Reached on Dairy Quota Conflict
The dispute began in 2022 when New Zealand formally challenged Canada’s dairy quota practices. Although the ruling supported New Zealand, Canada did not immediately comply, leading to pressure for enforcement. Trade Minister Todd McClay confirmed on Friday that a resolution had been reached.
“The government is pleased that this dispute has now been settled, and New Zealand exporters are guaranteed better access to the Canadian market,” he said.
ExportNZ Welcomes Outcome as Win for Trade Rules
Executive Director of ExportNZ, Josh Tan, described the outcome as a dual win for the country’s exporters and the broader rules-based trading framework. “The outcome is a win for New Zealand dairy exporters, and a win for the rules-based trading system,” he said.
Tan emphasised the importance of holding partners to their trade commitments. “It’s essential that our trade agreements function as they were agreed to – particularly in the current global trade context. Likewise, our trade partners should ensure they are playing by the rules.”
Canada’s Commitments Under the CPTPP
Canada has agreed to amend how it administers its CPTPP dairy quotas under the resolution. The changes include more efficient access for New Zealand exporters, the reallocation of underutilised quotas, and penalties for importers who misuse quotas. The said adjustments are expected to unlock up to $157 million in export value for New Zealand’s dairy sector.
Canadian Agriculture Minister Heath MacDonald described the outcome as a “mutually satisfactory” resolution, and said the changes had been made in “close consultation” with Canada’s dairy sector.
Minister McClay noted, “The CPTPP is a world-leading agreement that unlocks significant opportunities for all parties, but its obligations must be upheld. Today’s agreement reinforces support for the rules-based trading system.”
Praise for New Zealand’s Trade Officials
ExportNZ acknowledged the role of New Zealand’s trade officials in reaching the agreement. “ExportNZ acknowledges the Minister for Trade and Investment and our New Zealand officials, for their persistent effort to reach the right outcome under the CPTPP agreement,” said Tan.
New Zealand and Canada have maintained a diplomatic tone throughout despite the long-running nature of the dispute, “Canada remains a valuable trade partner to New Zealand,” Tan said.
“In agreeing to meet its obligations under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Canada has guaranteed better market access for Kiwi exporters and we commend them for honouring this agreed outcome.”
The recently settled trade dispute has reinforced New Zealand’s credibility as a supporter of international agreements and exporter access. The resolution is being viewed as a test of institutional resilience and trade enforcement mechanisms.