A Major Victory for New Zealand’s Exporters
In a significant win for New Zealand’s primary sector exporters, Minister for Trade and Export Growth, Damien O’Connor, expressed his satisfaction with the recent ruling by the CPTPP Panel, which favored New Zealand in its dispute against Canada.
Canada’s Dairy Quota System Deemed Inconsistent
The Panel’s verdict centered on Canada’s administration of its dairy quota system, which was found to be inconsistent with its obligations under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). O’Connor emphasized,
“Canada was not living up to its commitments under CPTPP, by effectively blocking access for our dairy industry to upscale its exports. That will now have to change.”
A Boost to New Zealand’s Export Sector
Since 2017, the New Zealand Government has signed seven new or upgraded free trade agreements, including CPTPP. These agreements have propelled the nation’s primary sector exports to record heights, reaching $57.4 billion this year.
Minister O’Connor noted,
“Today’s ruling will give exporters confidence and certainty that the mechanisms in place will ensure they receive the market access that all members agreed to.”
“This is a significant win for New Zealand and our exporters. Our dairy industry lost out on an estimated $120 million in revenue from the Canadian market in the past three years.”
A Closer Look at the CPTPP Panel Ruling
The Panel determined that New Zealand exporters were unable to fully utilize Canada’s 16 dairy tariff rate quotas, with Canada favoring its domestic dairy processors. Minister O’Connor reiterated,
“Between CPTPP, the UK FTA, the EU FTA, and our other FTA upgrades, the Government is successfully creating new opportunities for our exporters in some of the largest markets in the world.”
Record Highs for Dairy Exports
Highlighting the impressive growth, O’Connor said,
“Since 2017, primary sector export revenue has increased by 50 percent with dairy – our biggest export earner – hitting a record high of $26 billion for the year ending June 2023.”
Minister O’Connor also pledged the government’s unwavering support for businesses and trade agreements, stating,
“As a Government, we will continue to back our businesses and ensure that the historic gains we have made are not undermined and that the rules of our trade agreements are upheld.”
Strengthening International Relations
O’Connor acknowledged New Zealand’s strong friendship with Canada and the dispute settlement mechanisms within CPTPP. He expressed optimism, saying,
“We look forward to our dairy exporters being able to properly utilize the hard-won market access we negotiated through CPTPP, and we hope Canadian customers will welcome more consumer choice.”
Sources: THX News & New Zealand Government.
