NMPF Calls Out Foreign Suppliers’ Anticompetitive Trade Practices

NMPF submitted final joint written comments with the U.S. Dairy Export Council on Nov. 17 to the U.S. International Trade Commission (USITC) as part of the agency’s Section 332 investigation into the United States’ global nonfat milk solids competitiveness.

The organizations in their comments highlight how Canada continues to distort global nonfat milk solids markets through its new Class 4a pricing system that enables the production of low-priced dairy proteins destined for export. Clear production shifts following USMCA’s implementation indicate a deliberate attempt by Canada to circumvent the trade deal’s export disciplines established for dairy proteins, consequently undercutting U.S. producers at home and abroad. As the United States begins the mandated USMCA 2026 Joint Review, the USITC report will be a significant resource in ensuring that the agreement works as U.S. negotiators intended.

The submission also underscores the long-term competitive imbalance created by the European Union’s historic subsidies for casein and caseinate production, noting that more than four decades of financial support allowed European processors to build a dominant global position that persists today. Although the subsidy scheme ended in 2013, its legacy remains evident in the scale, infrastructure, and export strength of EU manufacturers, particularly in Ireland, France, and the Netherlands. NMPF’s filing urges the USITC to recognize the cumulative effect of these foreign policies on U.S. dairy competitiveness and to reflect these realities in its final report.

The filing complemented an earlier submission on July 16 and joint NMPF and U.S. Dairy Export Council testimony by Jaime Castaneda and William Loux at a July 28 hearing. The investigation follows persistent NMPF advocacy for the U.S. government to address Canadian attempts to evade their USMCA dairy commitments in a manner that disadvantages U.S. producers.