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Disputes with New Zealand as a Principal Complainant
Current disputes under New Zealand’s Free Trade Agreements
Canada – Dairy Tariff Rate Quotas under CPTPP
On 12 May 2022, New Zealand initiated dispute settlement proceedings against Canada under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) challenging Canada’s administration of its CPTPP dairy tariff rate quotas (TRQs). New Zealand’s Request for Consultations to Canada (the mandatory first step in a proceeding brought under CPTPP), is available below. A press release by the Minister for Trade and Export Growth(external link) can be found on the Beehive website.
New Zealand and Canada held consultations in June 2022, but these did not resolve matters.
On 7 November 2022, New Zealand submitted its request for the establishment of a panel to hear the case. New Zealand’s request for the establishment of a panel, which sets out the basis of New Zealand’s claim, is available below. A press release by the Minister for Trade and Export Growth(external link) can be found on the Beehive website.
The following CPTPP parties have joined this dispute as third parties: Australia, Japan, Mexico, Peru and Singapore.
On 9 March 2023, the panel was composed of the following individuals:
- Jennifer Hillman, Chair
- Petros Mavroidis
- Colleen Swords
The hearing for this dispute was held on 14–15 June in Ottawa.
Final Report of the CPTPP Panel
The Panel’s Report was released on 6 September 2023 (see below). The outcome is a decisive win for New Zealand. The Panel found that Canada is not administering its dairy TRQs in a manner that allows importers the opportunity to utilise them fully, and that Canada is impermissibly limiting access to TRQ quota to its domestic dairy processors. Under CPTPP rules, Canada has a reasonable period of time to change its TRQ administration to comply with the Panel decision.
Minister for Trade and Export Growth, Damien O’Connor, Press Release on the outcome of the dispute can be found here: New Zealand wins CPTPP dispute against Canada | Beehive.govt.nz(external link)
New Zealand’s Initial Written Submission and Rebuttal Submission are available below.
Canada’s written submissions(external link) and submissions of non-governmental entities are available upon request to Canada’s Responsible Office.
Australia's third party submission(external link) can be found on its Department of Foreign Affairs and Trade website.
This is the first dispute New Zealand has taken under a free trade agreement, and the first dispute that has been taken by any party under CPTPP. This page will continue to be updated as the case progresses.
- Press Release from High Commission in Ottawa welcoming outcome of CPTPP dairy dispute [PDF 268 KB]
- New Zealand's Rebuttal Submission – 11 May 2023 [PDF 837 KB]
- Rules of Procedure [PDF 187 KB]
- Panel request by New Zealand regarding Canada's allocation of dairy TRQs under CPTPP [PDF 298 KB]
- Request for consultations by New Zealand regarding Canada's allocation of dairy TRQs under CPTPP [PDF 237 KB]
- New Zealand's Opening Statement – As Delivered [PDF 343 KB]
- New Zealand's Oral Reply Statement – As Delivered [PDF 556 KB]
- Closing Statement of New Zealand – As Delivered [PDF 538 KB]
- Supplementary Submission of New Zealand [PDF 455 KB]
- New Zealand's responses to written questions from the Panel [PDF 528 KB]
- New Zealand's reply to Canada's responses to the Panel's written questions [PDF 480 KB]
Current WTO Disputes
Indonesia — Importation of Horticultural Products, Animals and Animal Product;
In 2013, New Zealand initiated WTO proceedings against Indonesia in respect of a range of trade restrictive import measures. The challenged measures were significantly impacting New Zealand beef and horticultural exports. New Zealand beef exports, for instance, had fallen by over 80 percent. Indonesia had previously been our second-largest beef export market by volume, worth $180 million in trade per year.
The case covered a range of inter-related trade barriers imposed by Indonesia on agricultural imports since 2011. There were over a dozen separate measures. These include:
- A prohibition on all imports of beef secondary cuts and offal.
- Restrictions limiting the sale of imported prime beef to hotels, restaurants and caterers. Thus, imported beef cannot be sold directly to consumers through key retail outlets (such as supermarkets and traditional markets).
- A requirement to purchase a certain percentage of domestic beef in order to import from overseas (a “domestic purchase requirement”).
- Restrictions on importing more or different products than specified on import licences (“fixed licence terms”).
- Incentives to be conservative in requesting import volumes or risk of having the ability to import revoked (an “80% import requirement”).
- Prohibitions on importing certain horticultural products during the Indonesian domestic harvest season, when the domestic price is above a certain level, or when harvested earlier than a certain period before importation.
- An import licensing regime that effectively closes the Indonesian market to imports for several months per year. This is due to rigid import licence application windows at the beginning of licensing semesters that don’t account for the time it takes to prepare and ship product to Indonesia.
New Zealand held WTO dispute settlement consultations (the first phase of the WTO dispute settlement process) with Indonesia in relation to our concerns in 2013 and 2014. Unfortunately, those consultations did not resolve the dispute.
On 18 March 2015, New Zealand requested the WTO Dispute Settlement Body to establish a panel to hear this dispute. New Zealand’s Panel Request was made alongside a Panel Request by the United States, with whom we are co-complainants. The following 14 WTO Members are third parties in the dispute: Argentina, Australia, Brazil, Canada, China, Chinese Taipei, the EU, India, Japan, Korea, Norway, Paraguay, Singapore and Thailand.
On 13 November 2015, New Zealand filed its first written submission to the WTO Panel. The first oral hearing with the Panel was held in Geneva from 1-3 February 2016. A second written submission was then filed on 2 March with a second oral hearing with the Panel held from 13-14 April. In the course of the litigation, New Zealand has responded to 120 questions from the Panel.
On 22 December 2016 the WTO Panel ruled in New Zealand's favour in respect of all 18 measures challenged by New Zealand. The WTO panel concluded that each of the measures at issue are inconsistent with Article XI:1 of the GATT 1994, which prohibits measures that prohibit or restrict imports of goods.
Indonesia appealed the Panel decision to the WTO Appellate Body on 17 February 2017. New Zealand filed its response submission on 7 March 2017 and subsequently made oral submissions before the Appellate Body in Geneva. On 9 November 2017, the Appellate Body upheld the key findings of the WTO Panel, confirming that all 18 of the challenged measures are inconsistent with Article XI:1 of the GATT 1994.
Indonesia has committed to bring its measures into compliance. While it has made significant progress to date (including by removing the import ban on certain beef cuts), some measures remain non-complaint. New Zealand continues to work with Indonesia to achieve full, commercially meaningful, compliance.
Disputes with New Zealand as a Third Party
Below is a list of disputes where New Zealand is currently participating as a third party:
- DS602 China - Anti-Dumping and Countervailing Duty Measures on Wine from Australia(external link)
- DS598 China — Anti-dumping and countervailing duty measures on barley from Australia(external link)
- DS566 Russian Federation — Additional Duties on Certain Products from the United States(external link)
- DS564 United States — Certain Measures on Steel and Aluminium Products(external link) (Türkiye)
- DS561 Türkiye — Additional Duties on Certain Products from the United States(external link)
- DS560 Mexico — Additional Duties on Certain Products from the United States(external link)
- DS559 European Union — Additional Duties on Certain Products from the United States(external link)
- DS558 China — Additional Duties on Certain Products from the United States(external link)
- DS557 Canada — Additional Duties on Certain Products from the United States(external link)
- DS556 United States — Certain Measures on Steel and Aluminium Products(external link) (Switzerland)
- DS554 United States — Certain Measures on Steel and Aluminium Products(external link) (Russian Federation)
- DS552 United States — Certain Measures on Steel and Aluminium Products(external link) (Norway)
- DS551 United States — Certain Measures on Steel and Aluminium Products(external link) (Mexico)
- DS550 United States — Certain Measures on Steel and Aluminium Products(external link) (Canada)
- DS548 United States — Certain Measures on Steel and Aluminium Products(external link) (European Union)
- DS547 United States — Certain Measures on Steel and Aluminium Products(external link) (India)
- DS544 United States — Certain Measures on Steel and Aluminium Products(external link) (China)
- DS543 United States — Tariff Measures on Certain Goods from China(external link)
- DS542 China — Certain Measures Concerning the Protection of Intellectual Property Rights(external link) (Proceedings suspended indefinitely)
- DS531 Canada — Measures Governing the Sale of Wine in Grocery Stores (second complaint)(external link) (Panel established but not composed)
- DS484 Indonesia — Measures Concerning the Importation of Chicken Meat and Chicken Products(external link) (Under appeal, awaiting functioning Appellate Body)
- DS455 Indonesia — Importation of horticultural products, animals and animal products(external link) (Panel established but not composed)
- DS389 European Communities — Certain Measures Affecting Poultry Meat and Poultry Meat Products from the United States(external link) (Panel established but not composed)
- DS365 United States — Domestic Support and Export Credit Guarantees for Agricultural Products(external link) (Panel established but not composed)
- DS357 United States — Subsidies and Other Domestic Support for Corn and Other Agricultural Products(external link) (Panel established but not composed)
Further information in some of the cases is provided below.
Indonesia – Chicken Meat and Products
On 3 December 2015, a WTO dispute settlement panel was established to hear Brazil's complaint challenging Indonesia’s restrictions on the importation of chicken products. Some of the measures challenged by Brazil, while focused on chicken meat, were similar to those regarding agricultural imports raised by New Zealand and the United States in the WTO dispute Indonesia – Importation of Horticultural Products, Animals and Animal Products. New Zealand made submissions to the Panel in writing and orally at the third party hearing held in July 2016.
On 17 October 2017, the Panel released its report finding that Indonesia had acted inconsistently with WTO rules. In 2019, Brazil initiated compliance proceedings against Indonesia on the basis that Indonesia had failed to comply with elements of the Panel report. New Zealand participated in these compliance proceedings. In November 2020, the compliance panel found that Indonesia had failed to comply with a number of the Panel’s findings. Both Indonesia and Brazil have appealed the Panel’s compliance decision.
United States — Tariff Measures on Certain Goods from China
New Zealand participated as a third party in a case brought by China against the United States concerning tariffs imposed by the US on Chinese goods under Section 301-310 of the US Trade Act of 1974. The Panel Report was released in September 2020. The US has appealed the decision.