Friday, 18 July 2025 08:33

Canada backs down in dairy dispute

Written by  Sudesh Kissun
Trade Minister Todd McClay. Trade Minister Todd McClay.

A long running trade dispute between New Zealand and Canada over dairy access has been resolved.

After holding out for many years, Canada has agreed to meet its obligations under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), potentially delivering up to $157 million per year in export value for New Zealand dairy exporters.

Trade Minister Todd McClay says Canada had failed to meet its obligation to New Zealand in respect of dairy access, but the agreement means they will now do so.

New Zealand initiated formal dispute settlement proceedings in respect of restrictive access to the Canadian market for dairy exports under the CPTPP in 2022. A dispute panel found in New Zealand’s favour however Canada failed to fully comply with the panel’s ruling. New Zealand threatened further action last year including the imposition of retaliatory tariffs against Canadian exporters.

“We notified Canada of retaliatory action last year unless they met their obligations to us, McClay says.

“The Government is pleased that this dispute has now been settled, and New Zealand exporters are guaranteed better access to the Canadian market,” McClay says

Under the agreement, Canada has committed to making commercially meaningful changes to the way it administers its dairy quotas under CPTPP, including faster and more efficient access to quotas for New Zealand exporters, reallocation of underused quotas, and penalties for importers who misuse quotas.

“The CPTPP is a world leading agreement that unlocks significant opportunities for all parties, but its obligations must be upheld. Today’s agreement reinforces support for the rules-based trading system,” McClay says.

“Canada is a close and long-standing friend and trading partner of New Zealand, and I want to thank them for their constructive engagement in reaching this resolution.”

More like this

NZ seeks certainty on US tariff, says McClay

Trade Minister Todd McClay says his officials plan to meet their US counterparts every month from now on to better understand how the 15% tariff issue there will play out, and try and get some certainty there for our exporters about the future.

Farmers urged to prepare as heavy rain looms

With adverse weather set to rain down on the Top of the South, the Bay of Plenty and parts of Northland, Agriculture Minister Todd McClay says farmers, foresters, and growers need to prepare for possible challenges.

Featured

Editorial: A new era for two co-ops

OPINION: Farmer shareholders of two of New Zealand's largest co-operatives have an important decision to make this month and what they decide could change the landscape of the dairy and meat sectors in New Zealand.

South Taranaki rural health hub boosts workforce

As the first of a new series of interprofessional rural training hubs opened in South Taranaki late September, Rural Health Network has celebrated the move as a "key pathway to encourage the growth and retention of health professionals in rural areas".

National

Machinery & Products

New McHale terra drive axle option

Well-known for its Fusion baler wrapper combination, Irish manufacturer McHale has launched an interesting option at the recent Irish Ploughing…

Amazone unveils flagship spreader

With the price of fertiliser still significantly higher than 2024, there is an increased onus on ensuring its spread accurately at…

» Latest Print Issues Online

Milking It

Tough times

OPINION: Dairy industry players are also falling by the wayside as the economic downturn bites around the country.

MSA triumph

OPINION: Methane Science Accord, a farmer-led organisation advocating for zero tax on ruminant methane, will be quietly celebrating its first…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter