New Zealand has filed a commerce dispute towards Canada concerning its implementation of dairy tariff charge quotas (TRQs) underneath the Complete and Progressive Settlement for Trans-Pacific Partnership (higher often called the CPTPP.)
It marks the primary dispute introduced ahead by any nation underneath the Pacific commerce deal that took impact in December 2018.
“New Zealand has notified Canada and different CPTPP events that we consider Canada’s implementation of its dairy TRQs goes towards the principles of the CPTPP,” says New Zealand’s Commerce and Export Development Minister Damien O’Connor, in an announcement issued Could 12.
New Zealand’s argument is much like the United States’ ongoing case over the implementation of Canadian dairy import guidelines underneath the brand new Canada-U.S.-Mexico commerce settlement — the CUSMA or USMCA.
The New Zealand authorities says Canada’s dairy TRQs stay unfilled, and that its exporters are unable to completely profit from market entry that was negotiated underneath the CPTPP. They are saying this misplaced market entry is estimated to be price roughly NZ$68 million (roughly $55 million) over the primary two years of the settlement.
“New Zealand has a superb relationship with Canada, who’re one in every of our closest companions on the earth. We’ve got appreciated Canada’s engagement on this problem at totally different ranges over a variety of years and these proceedings is not going to come as any shock to them,” says O’Connor. “Often even good associates disagree, and it’s for that motive dispute settlement mechanisms in free commerce agreements comparable to CPTPP exist to offer a impartial discussion board for settling such disputes after they come up.”
Canada has seven days to answer New Zealand’s request for consultations. If consultations are unsuccessful at resolving the dispute, New Zealand may request the formation of a dispute settlement panel.