November 10, 2022

 

New Zealand and Canada dispute over dairy exports

 

 

Damien O'Connor, New Zealand's Trade Minister, has accused Canada of "locking out" New Zealand farmers in a dispute over dairy exports that is expected to be resolved by an independent panel, Channel News Asia reported.

 

The minister said Canada is not fulfilling its part in a 2018 Trans-Pacific free trade agreement to permit New Zealand dairy products into Canada.

 

He said this is affecting exporters in New Zealand, who are blocked from the Canadian market.

 

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership by Canada, New Zealand, and nine other Asia-Pacific nations was signed in 2018.

 

New Zealand first argued about Canada's use of tariff rate quotas to allow the importation of dairy products with lower import duties in May.

 

O'Connor said that the dispute resolution process that New Zealand initiated against the Canadians over lost dairy market access, worth about US$40 million over two years, "did not resolve matters."

 

As a result, he said New Zealand has chosen to request the establishment of a panel to hear and decide the dispute.

 

The representatives of Canada have not yet provided an official response. Wellington's diplomatic representatives stated that Ottawa would have to respond.

 

The neutral panel to resolve the dispute will include three experts who will be chosen by Canada and New Zealand, according to the Wellington government.

 

In 2021, New Zealand's economy received a contribution from global dairy exports of US$10.96 billion, or about 23% of all exports.

 

-      Channel News Asia