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Dairy and the TPP talks

There are mixed reports regarding dairy coming out of the Trans Pacific Partnership trade talks in Hawaii. While some reports say the talks have bogged-down, Canada’s Globe and Mail says Ottawa has apparently made some type of offer to the United States. Japan’s Minister for Economic and Fiscal Policy said the Canadians were “putting their cards on the table.”

The United States wants more dairy access to Canada and Japan in exchange for granting New Zealand more access to the U.S. market. New Zealand sees this as a once-in-a-generation opportunity to improve their export business. New Zealand is the largest dairy exporter in the world but they are currently flush with product since China cut back on imports a year ago.

Canada has been reluctant to open their market and there is growing pressure from other players in the negotiations to get the dairy issue resolved or risk tanking the whole deal.