New Zealand has escalated its long-standing trade dispute with Canada over access to Canada’s dairy market. Trade Minister Todd McClay announced that New Zealand has triggered mandatory negotiations under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). These talks must begin within 15 days. The dispute began in May 2022 when New Zealand claimed Canada was improperly allocating dairy tariff-rate quotas to domestic firms, violating the trade agreement. Several CPTPP members, including Australia and Japan, have supported New Zealand in the case. Despite a recent panel ruling, New Zealand argues Canada has not complied with the findings. This marks New Zealand’s first trade dispute under a free trade agreement and the first dispute under the CPTPP.
