Trade and Agriculture Minister Todd McClay announced that New Zealand has notified the Canadian Government and other Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) members that it has triggered mandatory negotiations in a dairy dispute with Canada.
In September last year, a Panel of Arbitrators ruled in favour of New Zealand, finding that Canada had breached its obligations under the CPTPP by blocking New Zealand dairy access.
Canada has failed to comply with the ruling, and under the Agreement, New Zealand is to request formal negotiations.
“New Zealand takes its obligations under trade agreements seriously. The CPTPP is among the highest quality agreements signed by a group of like-minded economies,” said McClay.
“Parties to the agreement understood their commitments when the agreement was signed, and they must honour them.”
As a matter of principle, the New Zealand Government expected its trade partners to treat exporters fairly and within the rules of the agreements.
“Canada is not doing that concerning the dairy quotas negotiated and agreed with New Zealand.”
McClay added that New Zealand has decided to further pursue Canada for breaching its obligations under the CPTPP by blocking New Zealand dairy exporters’ access to the Canadian market.
“Canada can end this dispute by meeting its CPTPP obligations to us. If they continue to choose not to, they owe us compensation. Now, more than ever, it is vital that international agreements and the obligations they contain are honoured.”
As an exporting nation, New Zealand relied on trade commitments and market access negotiated in good faith. Under the CPTPP dispute settlement process, negotiations must commence within 15 days of notification.
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