Dairy squabble with Canada: sorting out a trade dispute (like making good cheese) can take time
The trade relationship between Kiwis and Canadians began to curdle more than two years ago, when we initiated dispute settlement proceedings against Canada regarding its implementation of dairy tariff rate quotas (TRQs) under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
Canada had signed on to become a CPTPP partner. It was not so keen on complying with CPTPP club rules when it came to protecting Canadian dairy farmers.
In May 2022, accordingly, Trade and Export Growth Minister Damien O’Connor said:
“New Zealand has notified Canada and other CPTPP parties that we believe Canada’s implementation of its dairy TRQs goes against the rules of the CPTPP.”
Our grouch was with the manner in which Canada was implementing its dairy TRQs – this (we contended) was inconsistent with its obligations under CPTPP.
Like making good cheese, getting a decision in these matters takes time.
More than a year later, in September 2023, we got good news and O’Connor welcomed the CPTPP Panel’s ruling in favour of New Zealand.
The Panel found that Canada’s dairy quota administration is inconsistent with its CPTPP obligations.
New Zealand exporters were not able to fully utilise Canada’s 16 dairy tariff rate quotas and Canada was granting priority access to its own domestic dairy processors.
“This is a significant win for New Zealand and our exporters. Our dairy industry lost out on an estimated $120 million in revenue from the Canadian market in the past three years.”
Canada had until 1 May this year 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 New Zealand.
But the changes which Canada published at the end of the deadline did not comply with the ruling.
On May 2, Todd McClay, Minister of Trade in the Luxon government, said he had asked for “urgent legal advice” in respect of our ‘next move’.
He also said the Canadian government still had time to honour its obligations to New Zealand both in the spirit and substance of the agreement.
This week we have been given an idea of what “urgent” means in the resolution of trade disputes.
New Zealand has notified the Canadian Government and other CPTPP members that it has triggered mandatory negotiations .
Under the CPTPP dispute settlement process, negotiations must commence within 15 days of notification.
This news was posted alongside announcements that …
In May 2022, accordingly, Trade and Export Growth Minister Damien O’Connor said:
“New Zealand has notified Canada and other CPTPP parties that we believe Canada’s implementation of its dairy TRQs goes against the rules of the CPTPP.”
Our grouch was with the manner in which Canada was implementing its dairy TRQs – this (we contended) was inconsistent with its obligations under CPTPP.
Like making good cheese, getting a decision in these matters takes time.
More than a year later, in September 2023, we got good news and O’Connor welcomed the CPTPP Panel’s ruling in favour of New Zealand.
The Panel found that Canada’s dairy quota administration is inconsistent with its CPTPP obligations.
New Zealand exporters were not able to fully utilise Canada’s 16 dairy tariff rate quotas and Canada was granting priority access to its own domestic dairy processors.
“This is a significant win for New Zealand and our exporters. Our dairy industry lost out on an estimated $120 million in revenue from the Canadian market in the past three years.”
Canada had until 1 May this year 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 New Zealand.
But the changes which Canada published at the end of the deadline did not comply with the ruling.
On May 2, Todd McClay, Minister of Trade in the Luxon government, said he had asked for “urgent legal advice” in respect of our ‘next move’.
He also said the Canadian government still had time to honour its obligations to New Zealand both in the spirit and substance of the agreement.
This week we have been given an idea of what “urgent” means in the resolution of trade disputes.
New Zealand has notified the Canadian Government and other CPTPP members that it has triggered mandatory negotiations .
Under the CPTPP dispute settlement process, negotiations must commence within 15 days of notification.
This news was posted alongside announcements that …
- A slew of appointments to public posts have been made
Two new members have been appointed to the NZ On Air Board; three new members are being appointed to the New Zealand Symphony Orchestra Board; Fletcher Tabuteau (a Minister in the 2017-20 government) has been appointed chair of the Te Puia New Zealand Māori Arts and Crafts Institute Board.
- Shane Reti will be getting away from it all (for a few days)
He further announced he will travel to Manila this weekend, leading New Zealand’s delegation to the World Health Organization’s Western Pacific Regional Committee Meeting.
- The first phase of Chhour’s Boot Camp pilot has been completed
- Our money is being railroaded
- Rules in the Migration Exploitation Protection Work Visa are being tightened
Here are the links:
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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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