Canada rejects NZ dairy protein ‘dumping’ claim
The Canadian government has brushed off criticism from the dairy industry in New Zealand, Australia and the US that it has been dumping dairy products on world markets, saying its exports aren’t on the rise.
Otago University international relations professor Robert Patman has meanwhile argued this is not the right time for New Zealand to join forces with the US in putting pressure on Canada over its trade practices, given the threats it is facing to its sovereignty from President Donald Trump.
Trade Minister Todd McClay responded positively last month to a call from the dairy industry for action over the alleged “dumping” of cheap Canadian milk protein on overseas markets.
DCANZ executive director Kimberly Crewther described the issue as “parallel” to the separate dispute between New Zealand and Canada over tariff barriers on dairy imports.
McClay responded to the plea by announcing officials would be exploring what action might be taken jointly with the US and Australia, “and in particular with the new administration in the US”.
Global Affairs Canada spokesperson John Babcock told The Post it was confident that Canada’s dairy practices aligned with its trade obligations, and there had been “no surge of dairy exports from Canada”.
“In fact, Canada has a negligible share of global dairy trade — approximately 1% — and in 2023, Canada’s dairy exports actually declined by approximately 3%,” he said.
Dairy farming had “unique challenges” and needed market stability, Babcock said.
“This is why Canada has a system that focuses on providing dairy producers with the opportunity of receiving fair returns by seeking to balance supply with demand.
“The Government of Canada will always defend our supply management, firmly standing up for Canada's dairy industry, farmers and workers and the communities they support.”
Crewther maintained Canadian dairy exports had been on the rise recently.
The figures needed some “unpacking” because Canada was shifting towards exports that had higher concentrations of protein, and to products containing milk protein that weren’t necessary classed as dairy products for the purpose of tariffs, she said.
Patman said if New Zealand had complaints about Canadian practices, the appropriate response was to take those to the World Trade Organisation, which it has done in relation to the alleged import barriers.
“We've won seven trade disputes at the WTO and we are one of the few countries that has won them all against much bigger trade partners,” he said.
But he believed many Kiwis would be deeply uncomfortable about the Government joining forces with the US to put pressure on Canada.
That was given Trump had threatened Canada with 25% tariffs and suggested it should cede sovereignty to the US, he said.
Crewther said DCANZ thought coordination with the US was “valid”.
“That doesn't necessarily mean the same mechanism or approach from the countries and what we've advocated for, for New Zealand, is WTO action,” she said.
“We are comfortable in having called for coordinated action in that context.”
McClay also defended exploring what action might be taken jointly with the US.
“If it’s good for New Zealand exporters and we can make the case, then we should be cooperating around the world,” he said.
“The time to make sure our dairy exporters are treated well is every single day.”
Source: Dairynews7x7 Feb 16th 2025 The Post