U.S. Dairy Industry Supports Administration’s Dedication to Defending U.S. Dairy Market Access into Canada

The White House announced earlier yesterday that it is taking action to impose 50% tariffs on dairy imports from Canada to defend the rights of U.S. dairy exporters. The administration indicated it is invoking Section 338 of the Tariff Act of 1930 to “…hold Canada accountable for its retaliation and discrimination…” The National Milk Producers Federation and U.S. Dairy Export Council support the administration’s efforts to identify all possible avenues to drive Canada to make the necessary changes to its protectionist dairy trade practices.

“We appreciate the administration’s commitment to standing up for dairy farmers and manufacturers eager to make full use of the market access commitments Canada made under the U.S.-Mexico-Canada Agreement [USMCA],” Krysta Harden, president and CEO of USDEC, said. “For far too long, Canada has intentionally misused its tariff rate quota system to impede the full use of USMCA dairy quotas. It’s time for Canada to come to the table and resolve this and other USMCA dairy issues. We look forward to working with the administration to ensure that all the intended dairy benefits of USMCA are fully realized.”

“Today’s assertive action by the administration makes clear to Canada that their dairy trade practices will no longer be tolerated,” Gregg Doud, president and CEO of NMPF, said. “Canada simply cannot continue to discriminate against U.S. dairy farmers by effectively blocking negotiated access to its market. It is well past time for Canada to negotiate in good faith and tackle the outstanding USMCA dairy implementation issues to help drive a successful conclusion of the USMCA review.”

Under USMCA, Canada committed to providing important additional quantities of duty-free access for U.S. dairy product exports to its market through the creation of several tariff-rate quotas (TRQs). Regrettably, Canada’s decisions on how to administer those TRQs have resulted in persistent underfill, denying the U.S. dairy industry of the intended market access opportunities. Additionally, Canada has used loopholes to evade USMCA disciplines on dairy protein exports. Both topics are priorities NMPF and USDEC have urged the administration to resolve during the ongoing USMCA Review.