‘Expand access to Canadian dairy market’ say NZ, US and Britain

With regard to New Zealand, this month a dispute panel found ‘non-conformities’ ruling against the Canadian government over dairy product access. This followed 4 claims against Canada made by New Zealand’s government last year related to market access under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

In one of the claims, New Zealand accused the Canadian government of failing to issue a sufficient amount of tariff rate quotas. These quotas directly relate to how much access dairy product makers in other signatory countries have to the Canadian market.

The panel noted that Canada is currently giving priority to domestic processors, which is contrary to the CPTPP. In addition, Canada’s notices to importers are not in alignment with the CPTPP, stated that panel, which also limits the opportunity of dairy product makers in other signatory companies to sell their products in Canada.

Response not popular

In response, the Canadian government has proposed to switch to a system of basing these quotas on existing market share, although it’s not clear what quotas have been based on in the past.

However, the International Cheese Council of Canada is warning that this proposal is wrong-headed. “Our members and associate members – small and medium-sized enterprises – have been left worse off by this exact system under the US-Mexico-Canada Agreement [USMCA],” stated the organisation’s chair Joe Dal Ferro.

US also unhappy

Similarly, US dairy organisations and government officials have just expressed disappointment with a ruling related to Canada’s dairy trade quotas, which, according to them, do not align with the USMCA.

The US had obtained a previous ruling its favour in 2022 about the same issue, but “it didn’t go far enough to argue that Canada had to actually truly open their market and allow for a number of different players in Canada” according to Jaime Castaneda, executive vice president for Policy Development and Strategy for the National Milk Producers Federation and the US Dairy Export Council.

For its part, the government of Canada stated that it was “very pleased with the dispute settlement panel’s findings, with all outcomes clearly in favour of Canada. This is good news for Canada’s dairy industry and our system of supply management.”

The US government says it will continue to fight under the existing USMCA, but another country has now pulled out of trade deal negotiations with Canada.

Britain walks away

British negotiators have halted 2 years’ worth of trade negotiation with Canada. This is “largely because Canada’s dairy industry would not budge” on market access for British cheese makers, according to a Canadian PhD student in economics at University of California who wrote a new article in Canada’s national Globe & Mail newspaper.

“Our overbearing dairy sector is part of the reason that CAN$2-billion of bilateral trade with Britain could disappear overnight,” says Kevin Yin.