Wednesday, 11 December 2024 07:55

Minister raises tariffs dispute

Written by  Peter Burke
Trade and Agriculture Minister Todd McClay. Trade and Agriculture Minister Todd McClay.

Trade Minister Todd McClay has used a meeting of the CPTPP hosted by Canada to take that country to task for defiantly refusing to open up its dairy market to NZ.

The Comprehensive Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a gold-standard free trade agreement of which both NZ and Canada are members. Canada is obliged to comply with the rule of the agreement, which means allowing NZ access for its dairy exports.

But in what is seen as a hypocritical and illegal stance, and despite winning arbitration actions, NZ has been unable to budge the Canadian government to comply with CPTPP rules.

McClay has in the past described Canada's action as cynical, while the head of DCANZ, Kimberly Crewther says Canada is a recidivist breaker of international trade rules and has cost the NZ dairy industry in the order of $120 million. The Canadian dairy industry is very small - there are just 1.3 million cows, but the dairy farmer lobby there is strong.

Before he left for Vancouver for the meeting, McClay told Dairy News that he'll be meeting his counterpart Mary Ng and will be raising this dispute with her directly. He says officials have met and have scheduled ongoing formal dispute process meetings, and continue to encourage Canada to meet their obligation to New Zealand.

"I have been clear, we have a good relationship with Canada, and we can work through issues, but in this case, they are not upholding their obligations to us and as a result, NZ dairy farmers are missing out on market access that was negotiated and granted under the CPTPP. This is a matter of principle and we take our obligations seriously and expect others to do the same," he says.

McClay says the ball is now squarely in Canada's court and NZ reserves the right to take any action deemed appropriate, including imposing tariffs sanctions on Canadian exports to New Zealand if this cannot be resolved at the diplomatic level.

As host of a free trade summit, this is not a good look for the Canadians who are clearly out of step with the other eleven member states.

More like this

Top Maori farms named

Maori farms from Northland and Northern Hawkes Bay are the finalists in this year’s prestigious Ahuwhenua Trophy competition  for the top Maori sheep and beef farm.

Times have changed

OPINION: Back in the 1960s and '70s, and even into the '80s, successive National government Agriculture Ministers and Trade Ministers were at the top of the cabinet rankings.

Will Trump get involved in NZ's dairy dispute?

Canada's blatant manipulation of international trade rules around the export of subsidised dairy products is likely to escalate further with the new Trump administration now in the White House.

Editorial: O Canada

OPINION: The Canadian government's love affair with its lifestyle dairy farmers has got it into trouble once again.

Featured

Fruit fly discovery 'concerning'

Horticulture New Zealand (HortNZ) says that discovery of a male Oriental fruit fly on Auckland’s North Shore is a cause for concern for growers.

Fonterra updates earnings

Fonterra says its earnings for the 2025 financial year are anticipated to be in the upper half of its previously forecast earnings range of 40-60 cents per share.

Nedap NZ launch

Livestock management tech company Nedap has launched Nedap New Zealand.

National

Certainty welcomed

There's been very little reaction to the government science reform announcement, with many saying the devil will be in the…

Science 'deserves more funding'

A committee which carried out the review into New Zealand's science system says the underinvestment will continue to compromise the…

Machinery & Products

Landpower win global award

Christchurch-headquartered Landpower and its Claas Harvest Centre dealerships has taken out the Global After Sales Excellence award in Germany, during…

Innovation, new products galore

It has been a year of new products and innovation at Numedic, the Rotorua-based manufacturer and exporter of farm dairy…

» Latest Print Issues Online

Milking It

No buyers

OPINION: Australian dairy is bracing for the retirement of an iconic dairy brand.

RIP Kitkat V

OPINION: Another sign that the plant-based dairy fallacy is unravelling and that nothing beats dairy-based products.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter