While no formal complaint has been filed, dairy industry representatives in Australia, the United States, and New Zealand are sounding the alarm over Canada’s dairy protein that they say is being “disposed of” on the world market.
The Dairy Companies Association of New Zealand (DCANZ), and U.S. and Australian dairy industry representatives are calling for their governments to take action to address the impacts that Canada’s “trade delinquency is having on world dairy protein markets.”
In a letter sent last month to the trade and agriculture ministers of New Zealand, dairy industry reps write that “collective and coordinated action is requested to address the mechanisms being used by Canada to enable these exports to be dumped on world markets.”
The countries say that Canada’s milk pricing mechanisms under supply management under-price surplus milk protein — protein that is then sold in world markets.
DCANZ executive director Kimberly Crewther says “Canada’s policy approach is at odds with its international trade obligations in much the same way as previous Canadian dairy pricing policies were found to breach WTO export subsidy rules in the past.” The joint-call in the letter is for the Governments of New Zealand, U.S., and Australia to actively pursue the issue using all available tools.
For the New Zealand industry, this issue is additional to the legal dispute about Canada’s limiting of access to CPTPP dairy quotas.
“It is an ongoing battle to ensure Canada upholds its trade commitments on dairy,” says Crewther.
The Dairy Farmers of Canada says that it has no additional comments on the matter, noting that no formal complaint has been made regarding this issue.
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