New Zealand is seeking World Trade Organisation authorisation to impose tariffs worth more than US$80m a year on Canada because of they way it subsidises dairy exports.
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The WTO ruled that Canada’s ‘special milk class’ programme, which subsidises dairy farmers, breached a 1994 agricultural trade agreement, but New Zealand claims that Canada has continued to breach regulations by devising a new system to get around the ruling.
Trade Negotiations Minister Jim Sutton said he was seeking permission from the WTO to impose penalty tariffs on Canada up to a value of US$83m on a range of products including timber, fish and intellectual property.
