Canada has agreed to provide access to dairy products from New Zealand, resolving a long-standing trade dispute between the two countries. The announcement was made by New Zealand Trade Minister Todd McClay.

The dispute centered around Canada's previous restrictions on dairy imports from New Zealand, which were found to violate the terms of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The CPTPP is a multilateral trade agreement aimed at reducing trade barriers among its member countries, including Canada and New Zealand.

Under the new agreement, Canada will revise its dairy import quotas, allowing for greater market access for New Zealand dairy producers. This adjustment is expected to significantly benefit New Zealand’s dairy industry, with estimated additional export revenue of approximately $157 million.

Minister McClay emphasized the importance of upholding trade commitments within the CPTPP framework, stating: “This is a win for New Zealand dairy exporters and for the integrity of the rules-based trading system.” The change follows consultations between the two governments and is seen as a step toward improving trade relations.

The revised quotas will facilitate increased shipments of a variety of dairy products from New Zealand into the Canadian market. This includes products such as milk powder, butter, and cheese, which are key components of New Zealand’s export portfolio.

The Canadian government has not provided specific details on the timeline for implementing the changes but confirmed its commitment to comply with the CPTPP obligations. Industry stakeholders in both countries have responded positively to the development, noting the potential for enhanced economic cooperation.

This outcome concludes a dispute that had been ongoing since the CPTPP came into force. It is expected to strengthen bilateral trade ties and support fair market competition among CPTPP member states.