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New Zealand challenges Canadian dairy trade practices

New Zealand has invoked dispute settlement proceedings against Canada under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP agreement. 

The Dairy Companies Association of New Zealand issued a statement saying Canada’s approach to trade agreement dairy quotas breaks the rules and severely restricts market access.  Chairman Malcolm Bailey says Canadian domestic processors sit on unused dairy quota allocation and have no interest in giving consumers access to New Zealand products.

The U.S. had a similar challenge under the USMCA trade agreement, which they won.  Last December, a dispute panel found Canada’s practice of reserving 85-100% of their dairy tariff rate quota pools for Canadian processors was inconsistent with the trade agreement.  U.S. dairy leaders including the National Milk Producers Federation wrote to U.S. Trade Representative Katherine Tai April 19th saying Canada’s latest proposal does not solve the problems and risks incentivizing further monopolistic behavior by a small number of Canadian processors.

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