Canada and New Zealand Resolve Dairy Dispute

Canada and New Zealand have successfully reached an agreement to resolve a prolonged trade conflict concerning dairy product access, as announced by the Canadian government on Thursday.

The agreement, achieved through consultation with Canadian dairy stakeholders, introduces minor policy adjustments to Canada's tariff rate quota (TRQ) administration and preserves existing market access commitments. New Zealand Trade Minister Todd McClay expressed satisfaction with the settlement, emphasizing enhanced market access for New Zealand exporters in Canada.

The dispute began in May 2022 when New Zealand accused Canada of improperly implementing dairy tariff rate quotas under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This new accord ensures meaningful changes to Canada's quota administration without altering its supply management policies.

(With inputs from agencies.)