We are cosy with Canadians on emergency management – but how are things going on the dairy trade front?
Point of Order’s Beehive monitors have been reminded of something Trade Minister Todd McClay said a few months ago about Canada’s disinclination to stick to the deal it struck when it signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
This resulted in our taking action under CPTPP trade rules to resolve their wrangling over our efforts to ship more dairy products to Canada.
The dispute obviously has not curdled our relationship with Canada on other fronts, because Emergency Management and Recovery Minister Mark Mitchell late last week announced the signing of an agreement between New Zealand’s National Emergency Management Agency (NEMA) and Public Safety Canada.
The agreement will strengthen international cooperation on emergency management matters, he said.
“With the frequency and severity of emergencies increasing globally, it’s important, now more than ever, that countries work together to build resilience and reduce risk,” he said.
But from what McClay was saying back in May, Canada is behaving badly when it comes to importing dairy products.
It was flouting the CPTPP rules and blocking dairy exporters’ access to its market.
More vexing, it was refusing to comply with a CPTPP trade dispute ruling in NZ’s favour.
Trade Minister Todd McClay says Canada’s refusal to comply in full with a CPTPP trade dispute ruling in our favour over dairy trade is cynical and New Zealand has no intention of backing down.
Mr McClay said he has asked for urgent legal advice in respect of our ‘next move’ and says the Canadian government still has time to honour its obligations to New Zealand both in the spirit and substance of the agreement.
We have heard no more about the matter.
Until Mitchell popped up to talk about the emergency management agreement, Canada had been mentioned only occasionally in ministerial proclamations from the Beehive.
In July there was a joint statement from the Prime Ministers of Canada, Australia and New Zealand on the need for an urgent ceasefire in Gaza and the risk of expanded conflict between Hizballah and Israel.
And Luxon, reporting a few days earlier on his chairing a meeting of the Indo-Pacific Four during the NATO’ Summit in Washington DC, said he had taken the opportunity “to meet bilaterally with a range of Leaders, including from Canada, France and Spain”.
Today, Luxon has reported back to us about his visit to Kuala Lumpur.
Our relationship with Malaysia – so far as we can tell – is much less troubled than our relationship with Canada.
The agreement will strengthen international cooperation on emergency management matters, he said.
“With the frequency and severity of emergencies increasing globally, it’s important, now more than ever, that countries work together to build resilience and reduce risk,” he said.
But from what McClay was saying back in May, Canada is behaving badly when it comes to importing dairy products.
It was flouting the CPTPP rules and blocking dairy exporters’ access to its market.
More vexing, it was refusing to comply with a CPTPP trade dispute ruling in NZ’s favour.
Trade Minister Todd McClay says Canada’s refusal to comply in full with a CPTPP trade dispute ruling in our favour over dairy trade is cynical and New Zealand has no intention of backing down.
Mr McClay said he has asked for urgent legal advice in respect of our ‘next move’ and says the Canadian government still has time to honour its obligations to New Zealand both in the spirit and substance of the agreement.
We have heard no more about the matter.
Until Mitchell popped up to talk about the emergency management agreement, Canada had been mentioned only occasionally in ministerial proclamations from the Beehive.
In July there was a joint statement from the Prime Ministers of Canada, Australia and New Zealand on the need for an urgent ceasefire in Gaza and the risk of expanded conflict between Hizballah and Israel.
And Luxon, reporting a few days earlier on his chairing a meeting of the Indo-Pacific Four during the NATO’ Summit in Washington DC, said he had taken the opportunity “to meet bilaterally with a range of Leaders, including from Canada, France and Spain”.
Today, Luxon has reported back to us about his visit to Kuala Lumpur.
Our relationship with Malaysia – so far as we can tell – is much less troubled than our relationship with Canada.
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We don’t imagine Mark Mitchell mentioned milk while meeting with the Canadians on emergency management.
But let’s not forget that NZ initiated the dairy trade dispute because Canada was not complying with CPTPP rules, blocking dairy exporters’ access to its market.
A CPTPP arbitration panel ruled decisively in NZ’s favour.
Canada had until May 1 to change how it administered its tariff rate quotas – to stop giving its own domestic industry priority access, and to allow exporters to benefit fully from the market access negotiated in good faith between Canada and NZ.
“The changes Canada has published today do not comply with the ruling,” McClay said at the time.
“Canada’s ongoing failure to meet its legal commitments is disappointing, but we have no intention of giving in on this. We back our exporters and we will defend hard-won free trade agreement commitments.
“New Zealand’s prosperity depends on international trade, making up 60% of the country’s total economic activity. It is only through a strong economy that we can reduce the cost of living and afford the public services Kiwis deserve.”
Canada’s disregard for the CPTPP rules was estimated to have denied NZ dairy exporters over $120 million in trade opportunities in the first three years of the CPTPP agreement, and these costs continue to grow.
In addition, NZ dairy exporters are concerned that Canada is disregarding its World Trade Organisation trade commitments.
McClay said New Zealand continued to engage in good faith throughout the dispute-resolution process
“… and I’ve asked officials to provide advice on next steps. I will be making an announcement on that in due course.”
We keenly await this announcement.
Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton
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