CPTPP reaffirms Canada’s dairy supply management system

WDC editorial note: Like the first CUSMA panel decision on Canada’s dairy TRQs, both countries initially perceive the decision as being in their favour, but that further review will provide additional interpretation.

From: Global Affairs Canada

Statement

September 5, 2023 - Ottawa, Ontario - Global Affairs Canada

The Honourable Mary Ng, Minister of Export Promotion, International Trade and Economic Development, and the Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food, issued the following statement in response to the release of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) dispute settlement panel’s report regarding Canada’s administration of its dairy tariff rate quotas (TRQs) under:

“Canada is very pleased with the outcome of the panel’s report which is a clear victory for Canada. The Panel has made a significant finding by recognizing Canada’s discretion to set TRQ allocation policies, including determining who is eligible to obtain an allocation. We will not negotiate these allocations with countries who seek to weaken Canada’s supply management system.

“Furthermore, the panel’s findings on the use of pools will not undermine Canada’s supply management system and is consistent with the approach taken in the Canada-United States-Mexico Agreement (CUSMA).

“The Government of Canada will continue to preserve, protect and defend our supply management system, as well as stand up for Canada’s dairy industry, its farmers and workers across the country. We will work closely with the dairy industry as we move towards the next phase of the process.”

Quick facts

• Today’s announcement follows New Zealand’s request for a dispute settlement panel on November 7, 2022.
• Within 45 days of the final report, the parties must try to agree on a reasonable period of time to eliminate any non-conformity.
• Canada’s dairy sector is a vital pillar of rural communities and a key driver of the economy. Located across the country, these 9,739 farms and 507 dairy processing plants generated $8.2 billion in farm cash receipts and $17.4 billion in sales respectively in 2022. Together, dairy production and processing activities account for more than 70,000 jobs. 

Associated links

• Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
• CPTPP dispute settlement

​Materials
Material relating to the dispute, including the final report can be obtained by contacting: Disputes-Differends@international.gc.ca