NZ dairy firms seek WTO action over Canada

A group representing New Zealand dairy companies has joined forces with overseas counterparts in a bid to get the World Trade Organisation to take action over what they allege is the dumping of dairy products on world markets by Canada.  The Dairy Companies Association of New Zealand (DCANZ) - which represents all the main dairy companies in New Zealand - said it had asked the World Trade Organisation (WTO) to initiate proceedings against Canada if it continues with a planned extension to its dairy trade protections. In a joint letter, DCANZ and its associated organisations in the US, Australia, Europe, and Mexico set out their concerns that a recently concluded agreement between Canadian dairy producers and processors would provide an incentive to substitute Canadian dairy ingredients for imported dairy ingredients and would unfairly subsidise exports of Canadian dairy products. The agreement would provide a guaranteed price for milk used to manufacture ingredient dairy products, including skim milk powder and milk protein concentrate, which is below Canada's cost of milk production, and which matches the lowest globally traded reference price for these products. "This will result in trade diversion and global price suppression," DCANZ executive director Kimberly Crewther said.