Canada’s Dairy TRQs Under Fire Again
Trade Minister Damien O’Connor said New Zealand submitted a request for consultations under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) regarding Canada’s dairy tariff rate quotas (TRQs). It is the first time such a dispute settlement has been sought by any country under the CPTPP. “Many of Canada's dairy TRQs remain unfilled, and this represents a tangible loss to New Zealand’s dairy exporters… The value to New Zealand of this lost market access is estimated to be approximately $68 million over the first two years, with this expected to increase year on year as the size of these quotas increase under CPTPP.”
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Canada has seven days to respond, after which the two countries can formally try to resolve the issue. New Zealand’s complaint follows a similar dispute over Canada’s quotas by the U.S. and Mexico, who took their case to a dispute settlement panel under the U.S.-Mexico-Canada trade agreement. That panel found Canada’s approach was inconsistent with its commitments, although Canada said the finding was “overwhelmingly in Canada's favor.” Some observers privately say the U.S. is not pressing Canada hard enough to resolve the dairy trade dispute.
