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.
New Zealand dairy processors are welcoming the Government’s commitment to continuing to push for Canada to honour its trade commitments.
This follows Canada’s confirmation of its approach to administering its Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) dairy import quotas that will again place most of the quota access in the hands of domestic processors, who have limited interest in importing from CPTPP countries.
"DCANZ agrees with the New Zealand Government assessment that Canada has cynically moved to replicate the outcome that the dispute panel ruled against," says DCANZ executive director Kimberly Crewther.
"The costs of Canada’s flouting trade rules are mounting for the New Zealand dairy industry,’ she says.
It is estimated that Canada’s disregard for the CPTPP rules denied New Zealand dairy exporters over $120 million in trade opportunities in the first three years of the CPTPP agreement, and these costs continue to grow.
Earlier this week, Trade Minister Todd McClay says New Zealand has no intention of backing down in a trade dispute with Canada over dairy products.
New Zealand initiated the dispute because Canada was not complying with Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) rules, blocking dairy exporters’ access to its market.
A CPTPP arbitration panel ruled decisively in New Zealand’s favour. Canada had until 1 May to change how it administered its tariff rate quotas - to stop giving its own domestic industry priority access, and to allow exporters to benefit fully from the market access negotiated in good faith between Canada and New Zealand.
McClay says he has asked for urgent legal advice in respect of our ‘next move’ and says the Canadian government still has time to honour its obligations to New Zealand both in the spirit and substance of the agreement.
NZ dairy exporters are also concerned that Canada is disregarding its WTO trade commitments.
Crewther points out that not only is Canada restricting access into its market, but there’s also a rising tide of subsidised Canadian dairy exports in other markets, contrary to previous WTO legal rulings.
“This is putting a billion dollars of New Zealand dairy protein exports to global markets at risk,” she says.
Farmlands says that improved half-year results show that the co-op’s tight focus on supporting New Zealand’s farmers and growers is working.
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 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.
Beef + Lamb New Zealand (B+LNZ) is having another crack at increasing the fees of its chair and board members.
Livestock management tech company Nedap has launched Nedap New Zealand.
An innovative dairy effluent management system is being designed to help farmers improve on-farm effluent practices and reduce environmental impact.
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