Trade Minister Todd McClay
Photo: RNZ / REECE BAKER
Canada has agreed to allow access for New Zealand dairy products following a long running trade dispute, Trade Minister Todd McClay says.
Dairy exporters had been blocked from the Canadian market, despite the move being in breach of the CPTPP trade agreement.
On Friday morning McClay announced an agreement had been reached.
He says Canada has committed to making changes to its dairy quotas which will deliver up to $157 million to New Zealand dairy exporters.
New Zealand initiated formal dispute settlement proceedings over restricted access to the Canadian market for dairy exports under the CPTPP in 2022.
A dispute panel found in New Zealand’s favour, however, Canada failed to fully comply with the panel’s ruling. New Zealand threatened further action last year including the imposition of retaliatory tariffs against Canadian exporters.
“The government is pleased that this dispute has now been settled, and New Zealand exporters are guaranteed better access to the Canadian market,” McClay said.
Under the agreement, Canada has committed to changing the way it administers its dairy quotas under CPTPP, including faster and more efficient access to quotas for New Zealand exporters, reallocation of underused quotas, and penalties for importers who misuse quotas.
“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,” McClay said.
He added Canada was a long-stranding friend and trading partner of this country and “constructive engagement” had brought about a resolution.
Deal welcomed
ExportNZ has welcomed the deal, saying it will unlock higher export value for Kiwi business.
Executive director Josh Tan said the outcome was a win for New Zealand dairy exporters, and a win for the rules-based trading system.
“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 was a valuable trading partner for New Zealand, Tan said.
Nelson Region, Marlborough, Tasman, West Coast, Canterbury, Otago, Southland
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