Canada, NZ End Dairy Trade Dispute Under CPTPP

Canada and New Zealand have settled a long-standing dispute over Canadian dairy import restrictions under the CPTPP after a trade panel ruled in favor of New Zealand. The settlement requires Canada to make technical changes to its tariff rate quota system, including faster and more efficient quota access, reallocation of underused quotas, and penalties for misuse. Canada maintains that these adjustments do not increase total market access or change its supply management system. New Zealand officials estimate the updated system could bring up to $129 million in annual benefits to New Zealand dairy exporters. The agreement averts potential trade retaliation and is being praised for upholding rules-based international trade. The outcome has drawn international attention, especially from the U.S., where Canadian dairy protections remain contentious.