Tuesday, 20 February 2024 12:55

DCANZ rejects Canadian proposals

Written by  Staff Reporters
Kimberly Crewther, DCANZ. Kimberly Crewther, DCANZ.

New Zealand dairy processors are rejecting new Canadian proposals for the administration of its dairy tariff rate quotas (TRQs) under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Dairy Companies Association of NZ executive director, Kimberly Crewther, says that rather than bringing the Canadian system in line with CPTPP commitments, the proposal will take an already restrictive import regime further backwards.

DCANZ had hoped that Canada would move swiftly to bring its system into compliance with its CPTPP obligations following a successful legal challenge by New Zealand in 2023. Instead, it is frustrated by Canada’s persistence in seeking to avoid agreed dairy market access being utilised.

“Canada has proposed to use a new and complex formula to allocate import quota in a way that will continue to put the majority of quota access in the hands of domestic processors, who have little interest in importing from CPTPP countries, and not in the hands of distributors and other importers including retailers who do want to import,” says Crewther.

“This proposal is entirely inconsistent with last year’s legal ruling that Canada must allow importers the opportunity to fully utilise the quotas”.

New Zealand dairy exporters are estimated to have lost $120 million in trade opportunities due to Canada’s breach of its commitments during the first three years of CPTPP.

These losses continue to grow in the absence of Canadian quota administration that provides importers the opportunity to fully utilise the available volumes.

“We see time and again Canada looking to ‘defend’ its supply management system at the expense of the legitimate economic interests of its trading partners and in contravention of its legal commitments. It is very far from the treatment you would expect from a trusted international partner and contrasts with the way that other New Zealand FTA partners like the UK and China have implemented their commitments”, says Crewther.

Canada’s approach is not only negatively impacting New Zealand exporters and Canadian importers, it also ultimately results in higher food prices for Canadian consumers.

DCANZ will be looking for the New Zealand government to ensure Canada fully complies with the legal ruling.

Quota administration is not the only area where Canada’s protectionism is distorting export opportunities for New Zealand dairy exporters. DCANZ is also concerned by the growing level of subsidized Canadian dairy protein exports and calls on the Canadian Government to also ensure its approach to dairy policy settings more generally respects and supports the maintenance of the global trade rules system.

More like this

Milk's more than just protein

Dairy Companies Association of New Zealand (DCANZ) executive director Kimberly Crewther said that while the Our Land and Water National Science Challenge report concerned itself with alternative proteins, the value of dairy as part of a sustainable food system extended beyond protein.

Featured

Support welcomed for southern farmers

Federated Farmers says it welcomes the announcement of extra Government support for farmers and growers in Southland and parts of Otago after the region was hit by severe wet weather.

Tatua’s $10.50/kgMS tops, again!

Waikato-based milk processor Tatua has announced a final 2023-24 season payout of $10.50/kgMS for its farmer shareholders, again topping the payout stakes among NZ milk processors.

Will silver turn to gold for state farmer?

Tucked away in a remote part of the central North Island, staff at a Pāmu (Landcorp) farm are working hard to solve one of the biggest challenges facing the dairy and beef sectors.

National

Machinery & Products

Quick, accurate access to data

Agri-tech company Precision Farming is linking with John Deere’s Operations Centre guidance technology to automate nutrient and spray record-keeping and…

» Latest Print Issues Online

Milking It

Seaweed wonder

OPINION: Research across the ditch has found that seaweed doesn’t just make a tasty wrap for sushi rolls.

Sour grapes

OPINION: As a country we should be celebrating Fonterra’s solid annual results announced last week.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter