New Zealand Initiates Dairy Trade Negotiations with Canada

New Zealand has escalated its long-running dairy trade dispute with Canada by initiating compulsory negotiations under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Trade Minister Todd McClay announced that negotiations must start within 15 days following New Zealand's notification, triggered by Canada's failure to comply with a previous ruling that found it breached its obligations by blocking New Zealand dairy access. New Zealand estimates losses of several hundred million dollars due to Canada's restrictive measures and emphasizes the importance of honoring trade agreements. McClay stated that Canada could resolve the dispute by either compensating New Zealand exporters or adjusting its tariff-rate quotas to comply with CPTPP rules. The situation is complicated by domestic pressures in Canada, which may hinder a resolution, potentially leading to further trade actions from New Zealand, including a case at the World Trade Organization. This dispute underscores the significance of maintaining the integrity of international trade commitments.