A Pacific Rim trade panel says Canada’s dairy-sector protections violate obligations Ottawa signed with countries like New Zealand.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership includes certain quotas for countries to export dairy at preferred tariff rates into other member countries.
New Zealand says Canada is limiting its quotas to protect domestic dairy processors, who operate under federal rules regulating the cost and supply of products such as milk and cheese.
The trade panel today says it agrees with part of the complaint from May 2022 and ordered Ottawa to change how it uses quotas.
New Zealand calls the decision “a decisive win” while Canadian Trade Minister Mary Ng says it is a “clear victory for Canada.”
Ng says the ruling confirms that Ottawa does have some discretion over how it allocates its dairy quotas.