Latest news with #CPTPP
Hamilton Spectator
a day ago
- Business
- Hamilton Spectator
Canada, New Zealand settle trade dispute regarding supply management of dairy sector
OTTAWA - Canada and New Zealand have settled a trade dispute over Ottawa's dairy-sector protections that regulate the cost and supply of products such as milk and cheese. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership includes certain quotas for countries to export dairy at preferred tariff rates into other member countries. New Zealand successfully argued before a trade panel in September 2023 that Canada was unfairly limiting its quotas to protect domestic dairy processors. The panel ruled at the time that Ottawa had some discretion over how it allocates its dairy quotas, but that some of its rules violate the trade deal. New Zealand threatened retaliatory tariffs after it said Canada failed to abide by the ruling. On Thursday, both countries said they reached an agreement for technical changes. In a statement, Trade Minister Maninder Sidhu and Agriculture Minister Heath MacDonald said the agreement only applies to quotas under the existing deal and 'does not amend Canada's market-access commitments.' They said the 'technical policy changes' to tariff-rate quotas primarily involve faster market access, increasing data transparency and a mechanism to reallocate underused quotas. They also enable an on-demand system for those with repeatedly underfilled quotas. New Zealand's trade department described the solution similarly. 'Importers will be able to access quota faster and more efficiently, making it easier to trade more dairy under Canada's CPTPP quotas,' the department wrote, adding that this was 'the first dispute New Zealand has taken under a free-trade agreement.' New Zealand Trade Minister Todd McClay wrote in a statement that this week's agreement will deliver the equivalent of up to $129 million in Canadian dollars 'in export value for New Zealand dairy exporters.' Dairy Farmers of Canada said it was 'aware' of the agreement, and 'expects that the Canadian government will continue to uphold our national food security and food sovereignty' after Thursday's settlement. 'We understand that this will result in certain minor policy changes to Canada's TRQ administration,' spokeswoman Lucie Boileau wrote. The dairy dispute was the first taken up by any party under the CPTPP, a trade deal largely focused on Pacific Rim countries who say they agree on rules-based trade. The U.K. joined that trade bloc last year, and the European Union has been looking at working with the grouping to counterbalance American and Chinese trade coercion. This report by The Canadian Press was first published July 18, 2025.
Scoop
a day ago
- Business
- Scoop
New Zealand Reaches Deal With Canada In Long-Running Dairy Trade Dispute
Canada has agreed to allow access for New Zealand dairy products following a long running trade dispute, Trade Minister Todd McClay says. Dairy exporters had been blocked from the Canadian market, despite the move being in breach of the CPTPP trade agreement. On Friday morning McClay announced an agreement had been reached. He says Canada has committed to making changes to its dairy quotas which will deliver up to $157 million to New Zealand dairy exporters. New Zealand initiated formal dispute settlement proceedings over restricted 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. "The government is pleased that this dispute has now been settled, and New Zealand exporters are guaranteed better access to the Canadian market," McClay said. Canada said the changes have been negotiated with "close consultation" with its dairy sector and the amendments will result in "minor policy changes". In a statement Canadian Agriculture minister Heath MacDonald said it was a "mutually satisfactory" resolution. Under the agreement, Canada has committed to changing 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 said. He added Canada was a long-stranding friend and trading partner of this country and "constructive engagement" had brought about a resolution. Last year ACT Party trade spokesperson Dr Parmjeet Parmar called the dispute a "betrayal of our friendship". She said if Canada could not comply with the CPTPP, it should be "booted out of the deal". Deal welcomed Fonterra is pleased to see the end of a long running trade dispute involving NZ and Canada. Fonterra global external affairs director Simon Tucker told Midday Report Canada has a very protected dairy market and it has taken what he calls "dogged determination" by governments and officials to force Canada to comply with its obligations. He said dairy farmers could sell millions of dollars of products into Canada but it is only a small part of the Fonterra sales which has revenues of more than $20 billion a year. "Canada is one of those high value niches around the world which would be good for Fonterra. "This was the right to do; to use the disputes settlement over this issue. We won, and then governments and officials have worked hard to force Canada into compliance. "This is the right outcome." Tucker said the win opens up opportunities for New Zealand to pursue further moves especially around Canada's protein subsidies which are considered unfair. ExportNZ has also welcomed the deal, saying it will unlock higher export value for Kiwi business. Executive director Josh Tan said the outcome was a win for New Zealand dairy exporters, and a win for the rules-based trading system. "It's essential that our trade agreements function as they were agreed to - particularly in the current global trade context. Likewise, our trade partners should ensure they are playing by the rules." Canada was a valuable trading partner for New Zealand, Tan said. The Dairy Companies Association of New Zealand congratulated the Government for settling the dispute, which was first initiated under the previous Government. Executive director Kimberly Crewther said the outcome proved that dispute mechanisms were still a valid and viable approach to be taken. She said Ministry of Foreign Affairs and Trade estimated $157 million of trade revenue was not able to be used, due to breaches of the CPTPP. "Previously, it was giving the majority of export licences under these quotas to its own processors, many of whom had very little interest in seeing imports occur and they could hold on to those export licences and not use them without any penalty," Crewther said. "The changes introduce penalties... so that's a good improvement and we hope that it will lift the utilisation rates." She said Canadian dairy farmers received subsidies, which brought low prices to global dairy trading among nations without farmer subsidies, like New Zealand. "They're skewing the global dairy trade playing field quite significantly," she said. "Unfortunately, Canada's not a stranger to having these sizeable impacts on trade opportunities for New Zealand exporters. "Canada has a reputation for being amongst the most protectionist of dairy countries in the world, and they do that in a way that makes their market very difficult to access even with these CPTPP quotas, it remains 95 percent closed." Crewther said New Zealand had "virtually no tariff protections" on dairy into the market, and openly imported dairy into the country. "So we operate on an open basis, our farmers are not receiving direct subsidies and we are we're trading fairly in the world." She said its first preference is an on-demand licensing system which ensured those applying for the quotas would utilise them appropriately. "It's really important to hold them to account. This case has shown that dispute settlement can and does work, and it's important that New Zealand continues to move forward and uses these mechanisms where we need to."
Agriland
2 days ago
- Business
- Agriland
Dairy prices soar by 46% across New Zealand
With tight supply and demand margins over the last few months, the New Zealand government body, Stats NZ are reporting that prices in the country for dairy products such as butter have increased by up to 46% in 12 months. Overall, food prices increased 4.6% in shops across the 12 months to June 2025, according to figures released by Stats NZ. The price increase for the grocery food group was due to higher prices for milk, butter, and cheese. Nicola Growden, a spokesperson for Stats NZ said: 'Dairy products continue to drive the higher cost in food prices.' Growden highlighted how butter prices have increased by approximately NZ€5.00 in the last decade, a 120% rise. Stats NZ outlined how butter prices are currently NZ$8.60/500g(€4.41). The government body added that cheese has experienced a 30% rise in the last year, reaching NZ$13.04/kg (€6.69). Milk has also climbed 14.3% in the 12 months, with consumers paying NZ$4.57 for 2 litres of milk in the shop (€2.34). Consumers are also paying more in the shop for products such as meat and poultry, with 1kg of mince now costing NZ$21.73 (€11.14) on average, up from NZ$18.80 (€9.64) in June 2024. Fonterra As calving is currently underway on most dairy farms in New Zealand, the farmer-owned Fonterra group are forecasting a milk price of NZ$10.00/kg of milk solids (MS). This will fall into an NZ$8.00-$11.00/kg/MS price range. In June, Fonterra announced a profit after tax of NZ$1.158 billion in the third quarter (Q3) of the financial year, up NZ$119 million or 11% on this time last year. As New Zealand and Fonterra are the largest dairy exporters in the world, more pressure on domestic supply and demand may be experienced in the wake of the government settling its Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) quota dispute with Canada. This may lead to increased exports in dairy produce from New Zealand.
NZ Herald
2 days ago
- Business
- NZ Herald
New Zealand reaches deal with Canada in long-running dairy trade dispute
New Zealand initiated formal dispute settlement proceedings over restricted 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. 'The Government is pleased that this dispute has now been settled, and New Zealand exporters are guaranteed better access to the Canadian market,' McClay said. Under the agreement, Canada has committed to changing 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 said. He added that Canada was a long-standing friend and trading partner of this country and 'constructive engagement' had brought about a resolution. Last year, Act Party trade spokeswoman Dr Parmjeet Parmar called the dispute a 'betrayal of our friendship'. She said if Canada could not comply with the CPTPP, it should be 'booted out of the deal'. ExportNZ has welcomed the deal, saying it will unlock higher export value for Kiwi business. Executive director Josh Tan said the outcome was a win for New Zealand dairy exporters, and a win for the rules-based trading system. 'It's essential that our trade agreements function as they were agreed to – particularly in the current global trade context. Likewise, our trade partners should ensure they are playing by the rules.' Canada was a valuable trading partner for New Zealand, Tan said. -RNZ
Globe and Mail
2 days ago
- Business
- Globe and Mail
Canada and New Zealand reach resolution in dairy trade dispute, Ottawa says
Canada and New Zealand have reached a 'mutually satisfactory' resolution to a long-running dispute over access for dairy products, the federal government said in a statement on Thursday. 'This agreement, negotiated in close consultation with Canadian dairy stakeholders, will result in certain minor policy changes to Canada's TRQ (tariff rate quotas) administration, and does not amend Canada's market access commitments,' International Trade Minister Maninder Sidhu and Agriculture Minister Heath MacDonald said in a statement. New Zealand Trade Minister Todd McClay added in a separate statement that the government was pleased the dispute has now been settled, and New Zealand exporters are guaranteed better access to the Canadian market. 'Today's agreement reinforces support for the rules-based trading system,' McClay said. The dairy industry's outsized political influence, explained in charts New Zealand launched a claim against Canada in May, 2022, arguing that Ottawa's implementation of dairy tariff rate quotas under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) trade agreement were against the its rules. Under the new agreement, Canada has committed to make commercially meaningful changes to the way it administers its dairy quotas under CPTPP, according to the New Zealand government. The Canadian government added that this means there are technical policy changes but these are limited to quotas administered under the terms of the CPTPP. Canada's supply management system, which since the 1970s has tightly controlled supplies of dairy, eggs and poultry by restricting production and limiting imports through onerous tariffs, has become a sticking pointing in its ongoing trade negotiations with the U.S. U.S. President Donald Trump has repeatedly criticized what he calls tremendously high Canadian tariffs on dairy products.
