Minor Dairy Policy Changes Expected
Canada has successfully resolved its dairy tariff rate quotas (TRQs) dispute with New Zealand under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
This resolution comes after close consultation with Canadian dairy stakeholders and demonstrates Canada’s strong commitment to its dairy industry and supply management system.
The Honourable Maninder Sidhu, Minister of International Trade, and the Honourable Heath MacDonald, Minister of Agriculture and Agri-Food, confirmed the agreement, stating that Canada remains dedicated to protecting its farmers, workers, and the communities that depend on them.
The agreement includes some minor policy adjustments in Canada’s TRQ administration. These changes are technical in nature and apply only to quotas under the CPTPP. Importantly, they do not alter Canada’s overall market access commitments or impact its supply management system.
With this mutual understanding, New Zealand has agreed not to pursue further action under the CPTPP dispute settlement process. The resolution showcases how both countries, as key CPTPP partners, used the agreement's mechanisms to address trade differences cooperatively.
Canada’s supply management system remains intact, ensuring continued support for the dairy sector. The technical changes ensure compliance with the trade agreement while safeguarding farmers' interests.
This outcome reflects Canada’s balanced approach in handling trade agreements — protecting national interests while promoting healthy international trade relationships.
Both Canada and New Zealand reaffirmed their commitment to working together on trade and investment issues within the CPTPP framework and other international platforms.
This resolution strengthens the trade ties between the two nations and highlights the importance of collaboration and dialogue in international trade matters.
Canada continues to stand firm on protecting its dairy industry while engaging positively with global trade partners.
According to the Canadian government, the changes will be published on October 1, 2025, for implementation beginning with the 2026 calendar year dairy TRQs.