Canada’s Dairy TRQs Under Fire Again

“Many of Canada’s dairy TRQs remain unfilled, and this represents a tangible loss to New Zealand’s dairy exporters…

Holstein dairy heifers
Holstein dairy heifers
(Maureen Hanson)

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.”

Unlock more Pro Farmer analysis - try 1-month for $1.

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.

More from Pro Farmer.

AgWeb-Logo crop
Related Stories
Boots-on-the-ground reports from Iowa to Ohio reveal mounting disease pressure, flood-driven replanting in Indiana and a growing need for rain.
From new friendships to hands-on learning, a week of summer camp helps middle school students explore modern dairy farming, agriculture technology and the many career paths that keep the industry moving.
Chris Szydel began working as a milker at Pagels Ponderosa nearly 30 years ago. Today, he’s the herd manager of both the Pagel Ponderosa and Hilltop Farm dairies and oversees three different parlors and 65 employees.
Get News Daily
Get Market Alerts
Get News & Markets App