Wellington, Oct 18 (IANS): New Zealand has taken the next step in a dairy dispute with Canada by triggering mandatory negotiations, Trade and Agriculture Minister Todd McClay said on Friday.

New Zealand has notified the Canadian government and other Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) members of this move. Under the CPTPP dispute settlement process, negotiations must commence within 15 days of notification, Xinhua news agency reported.

A Panel of Arbitrators ruled in favour of New Zealand in September 2023, finding that Canada had breached its obligations under the CPTPP by blocking New Zealand dairy access, McClay said, adding that Canada has failed to comply with the ruling and under the CPTPP the next step is for New Zealand to request formal negotiations.

"As a matter of principle, the New Zealand government expects our trade partners to treat our exporters fairly and within the rules of our agreements," he said, adding that Canada is not doing that with respect to the dairy quotas that were negotiated and agreed with New Zealand.

The minister said New Zealand has decided to further pursue Canada for breaching its obligations under the CPTPP by blocking New Zealand dairy exporters' access to the Canadian market.