Canada and New Zealand in Historic Trade War Over Dairy

After Canada refused to abide by a ruling over New Zealand dairy imports, the South Pacific nation has invoked a never-before-used dispute resolution.

A dairy cow in a file image. Aaron Josefczyk/Reuters

With talk of “betraying our friendship” all being done in the very polite way that exemplifies both countries, Canada and New Zealand are in the midst of a historic trade war over dairy products.

In September 2023, New Zealand won a trade dispute under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which found Canada was in breach for blocking dairy imports and gave it until May this year to fix things.