The Canadian government has denied dairy dumping allegations from New Zealand, Australia, and the United States, asserting that its exports are not increasing. John Babcock, spokesperson for Global Affairs Canada, stated that Canada’s dairy practices comply with trade obligations, with no surge in exports. “Canada holds only about 1% of global dairy trade, and in 2023, our dairy exports actually declined by approximately 3%,” he said. Babcock emphasized that Canada’s supply management system ensures market stability and fair returns for dairy producers.
The allegations, led by the Dairy Companies Association of New Zealand (DCANZ) and supported by Australian and US dairy groups, claim that Canada is effectively subsidizing its dairy exports while restricting imports. DCANZ Executive Director Kimberly Crewther argued that Canada’s exports have been rising, particularly in high-protein dairy products, which may not be classified as dairy for tariff purposes.
New Zealand Trade Minister Todd McClay, who last month responded positively to the industry’s call for action, announced that officials would explore potential joint measures with the US and Australia, particularly with the new US administration.
However, Otago University international relations professor Robert Patman cautioned against New Zealand aligning with the US to pressure Canada, citing concerns over US President Donald Trump’s threats to Canada, including 25% tariffs and suggestions that Canada should cede sovereignty. “Many Kiwis would be uncomfortable with such an alliance, given Trump’s hostility toward Canada,” he said.
Patman advised pursuing complaints through the World Trade Organization (WTO), where New Zealand has a strong track record, having won seven trade disputes, including against major economies.
Crewther supported coordinated action with the US and Australia but clarified that DCANZ’s preferred approach for New Zealand was WTO action. “We are comfortable advocating for joint action within the WTO framework,” she said.
Minister McClay defended New Zealand’s engagement with international partners, stating, “If it benefits New Zealand exporters, we should be cooperating globally. The time to ensure fair treatment for our dairy exporters is every single day.”
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