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Speaker 1: New Zealand and Canada trade scrap rolls on. This is

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Speaker 1: the CPTPP arbitration didn't work. So when our requesting formal negotiations,

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Speaker 1: essentially our dairy products are being blocked despite the fact

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Speaker 1: we've got access deal trade mins to Tom mclayback with

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Speaker 1: us on this.

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Speaker 2: Good morning, Mike, good morning.

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Speaker 1: This is not supposed to be what free trade is

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Speaker 1: all about, is it.

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Speaker 2: Yeah, that's right. Look, Canada entered into an agreement with us.

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Speaker 2: They knew what they were doing when they came down

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Speaker 2: to Auckland and signed it. It's incidentally the same government

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Speaker 2: for not honoring it. So we've decided to take the

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Speaker 2: next step in the formal legal procedure to get them

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Speaker 2: to allow dairy products to be sold in Canada.

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Speaker 1: Does this go anywhere tangible or useful though, because so

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Speaker 1: far it just seems to be a lot of wow

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Speaker 1: wow wah.

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Speaker 2: Yeah. So the system is set up so there is

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Speaker 2: a lot of talking. And look, we get on well

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Speaker 2: with Canada, we're good friends with them. We do a

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Speaker 2: lot on the world stage, but we disagree on this one.

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Speaker 2: That panel found in our favor. They made changes, but

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Speaker 2: they are not significant. They still are not meeting their obligation.

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Speaker 2: Now they formally must come to consultation with us within

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Speaker 2: fifteen days. If we don't reach agreement days after that,

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Speaker 2: we're able to take additional action, which can be looking

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Speaker 2: at the losses of New Zealand suffers. We have the

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Speaker 2: option to put tariff rates back on their trade. I

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Speaker 2: hope it doesn't get to that, kid. You can do

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Speaker 2: one to go ahead, would you. Well, we're not ruling

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Speaker 2: anything out. We reserve the right to take action. We're

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Speaker 2: taking this very seriously. Although the amount of trade is

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Speaker 2: not significant compared to the twenty five billion dollars worth

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Speaker 2: of dairy we sell around the world. We're a small country.

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Speaker 2: We honor our obligations and trade deals. We take them seriously.

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Speaker 2: You've got to stand up for yourself.

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Speaker 1: Which principle exactly are we indisputably right?

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Speaker 2: Yes we are, because when we negotiated an agreement, it

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Speaker 2: said that New Zealand had a right to sale a

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Speaker 2: certain quota of low tariff into that market. The way

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Speaker 2: that Canada has arranged their system blocks us and stops

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Speaker 2: us doing that, so New Zealand exports are worse off.

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Speaker 2: You know, the tribunal found in our favor. It wasn't easy.

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Speaker 2: We had to make the case and therefore we are right.

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Speaker 2: So Canada can do one of two things. They can

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Speaker 2: make changes or they can pay us compensation. They don't

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Speaker 2: have the option to do nothing.

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Speaker 1: Are they bad actors?

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Speaker 2: Well, look, I don't want to speak ill because we're

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Speaker 2: about to go. And why not stiffing negotiation? Yeah, well

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Speaker 2: negotiations with them. But they have a bit of record

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Speaker 2: of doing this around the country, you know, around the world.

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Speaker 2: In this case, we've decided to stand up for them,

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Speaker 2: stand up to them. It's the first time that this

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Speaker 2: system has been used under the cp TPP. New Zealand

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Speaker 2: has never put tariff sanctions against any country before. But

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Speaker 2: I send them a really clear signal they owe us,

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Speaker 2: pay us all. We're coming after you.

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Speaker 1: Good stuff, Todd, appreciate you have a good weekend. Tom McLay,

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Speaker 1: Who's our Trade Minute.

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Speaker 2: For more from the Mic Asking Breakfast, listen live to

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