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New Zealand Wins Dispute with Canada Over Dairy Trade

New Zealand on Wednesday won a dispute with Canada over dairy trade in a free trade agreement.

In a statement, New Zealand Trade and Export Growth Minister Damien O’Connor welcomed the ruling in his country’s favor and called it a “significant” win for New Zealand’s primary sector exporters.

The ruling was announced by an independent panel of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

“The panel found that Canada’s dairy quota administration is inconsistent with its obligations under the CPTPP,” said the minister.

The CPTPP is a free trade area of 11 countries – Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam, while the UK also struck a trade deal to join the bloc in March.

According to the New Zealand government, the Canada restrictions on its dairy cost about $120 million in lost revenue in the past three years.

“Canada was not living up to its commitments under CPTPP, by effectively blocking access for our dairy industry to upscale its exports. That will now have to change,” said O’Connor.

The independent panel found that New Zealand exporters were not able to fully utilize Canada’s 16 dairy tariff rate quotas and that Canada was granting priority access to their own domestic dairy processors, it said.

In May 2022, New Zealand initiated disputed settlement proceedings against Canada in the free trade deal. Despite consultations in June 2022, the sides did not reach any agreement to resolve the issue.

Australia, Japan, Mexico, Peru, and Singapore also joined the dispute as third parties. In March, the CPTPP formed a panel and heard the dispute in June.

Source : AA