In May 2022, New Zealand initiated dispute settlement proceedings against Canada under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) challenging Canada's administration of its CPTPP dairy tariff rate quotas (TRQs).
Following negotiations, Canada and New Zealand have now announced that they reached a mutually satisfactory solution to resolve their CPTPP dairy tariff rate quotas dispute.
The agreement, negotiated in close consultation with Canadian dairy stakeholders, will result in certain minor policy changes to Canada's TRQ administration, and does not amend Canada's market access commitments. These technical policy changes are limited to quotas administered under the terms of the CPTPP, and will not negatively impact Canada's dairy industry or supply management.
The changes to Canada's TRQ process will be published on October 1, 2025, for implementation beginning with the 2026 calendar year dairy TRQs. With these changes, New Zealand has confirmed that it will not take further action under the CPTPP dispute settlement process.