WELLINGTON, July 19 (Xinhua) -- New Zealand and Canada have settled a longstanding dairy trade dispute under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
An agreement to settle the trade dispute over dairy market access is expected to boost New Zealand's dairy export value by up to 157 million NZ dollars (93.8 million U.S. dollars) annually, New Zealand Trade and Investment Minister Todd McClay said on Friday.
The dispute began in 2022 when New Zealand launched formal proceedings against Canada, claiming that Canada's restrictions on dairy imports breached CPTPP commitments.
A dispute panel ruled in New Zealand's favor, but Canada did not initially implement the required changes until New Zealand threatened tariffs in 2024, prompting compliance, according to the New Zealand government.
Under the new arrangement, Canada will overhaul its dairy quota system for New Zealand, ensuring faster access, reallocation of unused quotas, and penalties for misuse, said the New Zealand government in a statement.
McClay said the deal ensured better access for New Zealand exporters, underscored rules-based trade, and praised Canada's constructive approach. ■