Canada's non-compliance with CPTPP trade deal 'cynical', says Trade Minister Todd McClay

The Trade Minister said Canada's government still has time to "honour its obligations".
The Trade Minister said Canada's government still has time to "honour its obligations". Photo credit: Getty Images.

The Trade Minister has labelled Canada's refusal to fully comply with a trade dispute ruling as "cynical", and says Aotearoa won't back down.

Todd McClay said in a statement on Thursday he has asked for urgent legal advice on the matter, which affects dairy exports.

He said Canada's government still has time to "honour its obligations" to New Zealand in the spirit of the CPTPP agreement, signed in 2018.

It follows almost two years of failed talks between the two countries after Aotearoa took issue with Canada's dairy tariff rate quotas (TRQs).

TRQs determine how many dairy products can be imported into Canada without facing tariffs.

'We have no intention of giving in on this'

In September last year, a CPPTP panel concluded that Canada had been administering its TRQs in breach of the agreement, which McClay said on Thursday meant our dairy exporters were effectively blocked from accessing the Canadian market.

"Canada had until May 1 to change how it administered its tariff rate quotas - to stop giving its own domestic industry priority access, and to allow exporters to benefit fully from the market access negotiated in good faith between Canada and New Zealand," he said.

Canada's recent policy changes still don't comply with the CPTPP, which McClay called "disappointing".

"We have no intention of giving in on this," he said, adding that officials will engage "in good faith".

"New Zealand supports trade rules and takes seriously its obligations to trade partners. We expect others to show us the same courtesy."

Aotearoa joined the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) in 2018, after former Trade Minister David Parker ratified the agreement with 10 other countries.