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

DCANZ's wish list for new Govt

New Zealand dairy companies say their policy priorities for the incoming government are the same as they were for the previous Labour administration.

Calls to upgrade EU FTA

Dairy processors want New Zealand to upgrade the free trade deal signed with the European Union by the former Labour Government.

Editorial: Canada eats humble pie

OPINION: While the champagne corks have been popping in New Zealand with our victory over Canada at the latest CPTTP outcome, in Canada, humble pie might be the order of the day.

No pushover

A warning to New Zealand: don't hold your breath about Canada rushing to open its market to our dairy exports.

Canada's 'P' problem

Despite the Canadian Prime Minister Justin Trudeau swanning around the world claiming his country supports rules-based trade – he said this just a few days ago – the fact remains Canada is regarded globally as one the world’s most protectionist economies.

Featured

Feds back Fast-Track Approval Bill

Federated Farmers is throwing its support behind the Fast-track Approvals Bill introduced by the Coalition Government to enable a fast-track decision-making process for infrastructure and development projects.

National

Frontline biosecurity 'untouchable'

Biosecurity Minister Andrew Hoggard has reiterated that 'frontline' biosecurity services within Ministry for Primary Industries (MPI) will not be cut…

Machinery & Products

New name, new ideas

KGM New Zealand, is part of the London headquartered Inchcape Group, who increased its NZ presence in August 2023 with…

All-terrain fert spreading mode

Effluent specialists the Samson Group have developed a new double unloading system to help optimise uphill and downhill organic fertiliser…

» Latest Print Issues Online

Milking It

Plant-based bubble bursts

OPINION: Talking about plant-based food: “Chicken-free chicken” start-up Sunfed has had its valuation slashed to zero by major investor Blackbird…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter