NMPF Prepares Trade Policy Asks

Tag: dairy trade

NMPF Prepares Trade Policy Asks

Posted on by Theresa Sweeney

NMPF and the U.S. Dairy Export Council (USDEC) shared their U.S. dairy trade priorities with USDA and the Office of the U.S. Trade Representative (USTR) on Jan. 27, following an “America First Trade Policy” executive order issued by President Trump issued on Inauguration Day, Jan 20. Three additional executive actions to impose 10% tariffs on China and 25% tariffs on most products from Mexico and Canada were also issued on Feb. 1, although the U.S. has postponed tariffs on the latter two partners for approximately 30 days.

The Jan. 27 broad trade order directs to USTR and its interagency partners affecting U.S. dairy trade to take a number of actions including:

  • Identifying unfair trade practices
  • Conducting an expedited review of the U.S.-Mexico-Canada Agreement
  • Providing recommendations to revise existing trade agreements to achieve or maintain reciprocal concessions; and
  • Pinpointing opportunities for new bilateral or sector-specific market access opportunities.

With an April 1 deadline for the trade reports, the input from NMPF and USDEC comes at an ideal time and emphasizes the importance of resolving dairy trade irritants and targeting key markets for growth. In addition to underlining the importance of exports to the success of American dairy farmers and companies, the joint USDEC and NMPF document details recommendations to improve the industry’s global competitive standing. This includes expanding market access to bridge tariff gaps with EU and New Zealand suppliers and addressing the U.S. trade deficit of more than $2.5 billion with the European Union.

On the tariffs, President Trump announced the measures due to result of unresolved concerns related to illicit drug flows and illegal immigration. Mexico and Canada have both promised retaliatory tariffs should U.S. tariffs move forward. The pause in tariffs on Mexico and Canada means trade with those countries can continue uninterrupted for the coming month.

In a Feb. 2 statement, Krysta Harden, president and CEO of USDEC, encouraged the administration “to draw on the types of tools President Trump wielded so successfully when negotiating USMCA—bringing everyone to the table and working out a solution that minimizes unintended consequences for farmers, rural manufacturers, and consumers.”

NMPF and USDEC also joined more than 400 agricultural organizations in signing onto a Jan. 15 letter to Senate Agriculture Committee Chair John Boozman, R-AR, and Ranking Member Amy Klobuchar, D-MN, to endorse Brooke Rollins for Secretary of Agriculture.

Leading up to her Jan. 23 confirmation hearing, NMPF collaborated with members of the Senate Agriculture Committee to highlight dairy trade challenges. Senators on both sides of the aisle stressed the importance of USDA pursuing a more active trade agenda and vigorously advocating on behalf of U.S. farmers in international negotiations.

NMPF Meets with U.S.-Mexico Dairy Working Group

Posted on by Theresa Sweeney

NMPF Executive Vice President Jaime Castaneda spent Dec. 3-6 in Mexico City, meeting with the U.S.-Mexico Working Group and strengthening ties with local Mexican dairy producers and industry organizations.

The Working Group is an outgrowth of prior U.S.-Mexico Binational Meetings. It convenes at the working level to share more in-depth knowledge and ideas on how to increase dairy consumption and expand trade between the two countries.

Castaneda met with dairy companies, farmer organizations and government officials to encourage Mexico to engage with the new U.S. administration to find solutions to issues of common concern, such as immigration and trade, rather than escalate tensions. He emphasized that the best means for Mexico to address the legitimate concerns raised by the incoming Trump administration is to work collaboratively.

NMPF, in partnership with the U.S. Dairy Export Council and other agricultural organizations, is working to facilitate the conversations and ensure agriculture trade does not become collateral damage in broader disputes among the U.S. government and its partners.

What dairy trade may look like under Trump

Posted on by Alan Bjerga

Jaime Castaneda HeadshotU.S. trade policy has changed significantly since the United States last passed a new free trade agreement (FTA), all the way back in 2011. During the past decade, securing new agricultural market access has become more difficult as it has been frustrated at times by both a lack of support in Washington, D.C., as well as an unwillingness from our trading partners to engage in earnest negotiations.

Although the United States has at times proposed new regional pacts and secured more targeted trade expansions in specific sectors, these proposals were typically seen as unbalanced and ultimately were found to be lacking in terms of political support here at home. Unfortunately, this trend looks poised to continue to the detriment of U.S. dairy producers and exporters. Despite these headwinds, U.S. dairy (and agriculture) exports have grown exponentially over the last 15 years, due in key part to established FTAs, World Trade Organization access, and more targeted agreements, but also because the growth in consumer demand for our dairy products outside the U.S. has risen in parallel with greatly improved economic conditions since the recession of 2009.

With Donald Trump returning to the White House in January, the National Milk Producers Federation is examining how his second administration may approach trade policy and what it means for U.S. dairy producers.

Comprehensive trade agreements and tariffs

President Trump’s “America First” economic policy was the cornerstone of his trade policy decisions in his first term, and it is a trend expected to accelerate in a second term. The first Trump administration focused on renegotiating the North American Free Trade Agreement (NAFTA) — now the U.S.-Mexico-Canada Agreement (USMCA) — while also securing sectoral trade agreements with China and Japan and a pursuit of FTAs with the United Kingdom (UK) and Kenya. Negotiations with the UK faltered as a result of the enormous complexity of the UK’s exit from the European Union. Discussions with Kenya ended with the change from the Trump to Biden administrations. A resumption of trade negotiations with both could be explored under a second Trump administration in conjunction with Congress passing a renewal of Trade Promotion Authority (TPA) legislation.

New comprehensive trade agreements, or deals announced in specific sectors — along the lines of those pursued under Trump 1.0 — would open new markets for U.S. dairy producers. In contrast, tariff hikes imposed on trading partners invite the potential for retaliatory duties on U.S. dairy exports, exacerbating any competitive disadvantage that American dairy producers might face while reaching international customers.

USMCA review

President Trump’s renegotiation of NAFTA resulted in USMCA in 2020, with newly negotiated aspects of dairy products trade between the United States and Canada featured as a key element of the agreement. As USMCA prepares to enter its six-year mandatory review period in 2026, Canada’s persistent attempts to circumvent its dairy market access and protein export cap obligations will be front and center in the discussions, both on Capitol Hill and within the administration.

The role of Congress

While trade policy is largely driven by the executive branch, Congress will have a significant role in several areas over the next four years. In addition to any TPA discussion, there could also be a debate over China’s Permanent Normal Trade Relations (PNTR) status. Congress will also want to have input regarding the USMCA’s 2026 review process, and a renewal of the trade title of the farm bill will influence dairy’s participation in U.S. food aid programs. Across these issues, the U.S. dairy community will have to make its voice heard to ensure that policymakers prioritize the issues that impact dairy producers and workers on the ground.

These are just a sample of the many trade issues that NMPF, the U.S. Dairy Export Council (USDEC), and their allies will prioritize in the Trump administration. With the backing of more than 26,000 dairy farms and millions of additional workers, NMPF is confident that it will be able to work with Congress and the administration to pursue new market access, resolve harmful barriers to trade, and promote the U.S. dairy industry as the global supplier of choice.

This column originally appeared in Hoard’s Dairyman Intel on Nov. 7, 2024.

NMPF Outlines Dairy Trade Priorities to USTR

Posted on by Theresa Sweeney

NMPF and the U.S. Dairy Export Council (USDEC) submitted Oct. 17 comments to the Office of the U.S. Trade Representative (USTR) highlighting access to Canada, Indonesian foot-dragging and EU protectionism as among the most pressing trade barriers affecting U.S. dairy exports for the agency’s National Trade Estimate report.

The annual report provides a comprehensive review of significant foreign trade and investment barriers to U.S. exports.

The comments underscore that U.S. dairy exporters face challenges accessing markets around the globe, ranging from unnecessary import certification requirements to attempts by trading partners to limit imports by sanitary requirements not grounded in science. NMPF and USDEC urged the U.S. government to prioritize issues in 37 markets, including:

  • U.S. dairy access to the Canadian market, which has failed to the promises made by the US-Canada-Mexico Agreement (USMCA).
  • Resolving Indonesia’s inability and/or unwillingness to register U.S. dairy plants in a timely and predictable manner.
  • Countering the European Union’s attempts to monopolize common food names like “parmesan” and “feta” in markets around the world.

Read the full complete set of comments here.

NMPF’s Bjerga on Dairy’s Clout in the Elections

Posted on by Alan Bjerga

NMPF Executive Vice President for Communications & Industry Relations Alan Bjerga discusses the reasons why dairy farmers may be an especially influential portion of the farm vote in an interview on RFD-TV. Because dairy farms tended to cluster around major metro areas, they’re disproportionately represented in some of this year’s most closely contested states in the competition for the White House.

U.S. defends dairy in Colombia

Posted on by Alan Bjerga

Jaime Castaneda HeadshotBy Jaime Castaneda, Executive Vice President, National Milk Producers Federation 

NMPF and the U.S. Dairy Export Council (USDEC) are working to preserve market access for American dairy exports to Colombia following the Colombian government’s abrupt July 5 decision to initiate a politically driven “subsidies and countervailing measures” investigation into milk powder imports form the United States.

The move has little to do with U.S. milk and everything to do with Colombia’s domestic politics. In an effort to reverse slipping popularity with voters, the Colombian government has decided to misuse trade tools usually reserved for private industry to counter legitimate damage from “dumped” product sold at below market rates. In contrast to this, Colombia’s government has instead launched this case on its own, alleging that U.S. milk powder exports from 2020 to 2023 were unduly subsidized by U.S. government programs and damaged Colombian dairy producers. Unfortunately, due to the investigation’s political nature, the Colombian government could impose tariffs on imported U.S. milk powder products as early as September 16. That would be certain to stifle trade to the market.

NMPF and USDEC have been working with U.S. exporting cooperatives and companies, legal teams, and the U.S. government to submit a strong, data-driven defense proving that this investigation is without merit.

In their counterarguments, NMPF and USDEC note that the investigation is baseless for many reasons, including:

  1. Product comparison: Imported U.S. milk powder and domestically produced Colombian fluid milk are distinct products with different physical characteristics and end uses, making them non-comparable.
  2. Subsidy misinterpretation: The Colombian government incorrectly assumes that U.S. dairy producer support directly benefits milk powder manufacturers, which is not the case.
  3. Lack of causal link: U.S. milk powder imports haven’t caused any damage to the Colombian dairy industry. Evidence simply doesn’t exist.

Because of the political nature of this investigation, a fair result is not guaranteed, which means that U.S. government intervention may be necessary. NMPF and USDEC are urging U.S. Trade Representative Katherine Tai and U.S. Department of Agriculture Secretary Tom Vilsack to use all available tools to respond forcefully should Colombia impose tariffs on U.S. milk powder imports despite the lack of evidence meriting such a result.

Congress is also paying attention. A letter sent by the bipartisan leads of the U.S. House of Representative’s Agricultural Trade Caucus to the Colombian Ambassador to the United States highlights the U.S. dairy industry’s long-standing commitment to work with its Colombian counterparts and encouraged the two industries to work together to strengthen the dairy sectors in both countries instead of pursuing meritless investigations.

Colombia’s investigation will play out over months, starting with preliminary results and potential provisional measures as early as September 16, followed by a public hearing and additional comment periods.

At stake is $70 million in annual U.S. milk powder exports to Colombia.

While not a trivial amount by any means, this investigation could also set a dangerous precedent for like-minded governments to imitate. Over the past several years, protectionist sentiments have grown around the world, and Latin America is no exception. The region has become a battleground in the effort to preserve existing trade opportunities, flaring up from Peru and Ecuador to Brazil and Mexico.

While cooperating with the investigation, NMPF and USDEC continue to engage with policymakers and allied organizations to seek a positive conclusion. Regardless of which way this investigation turns out, it’s important for the United States to respond forcefully and let its trading partners know that such maneuvers will not be tolerated.

This column originally appeared in Hoard’s Dairyman Intel on Sept. 5, 2024.

NMPF’s Castaneda on Colombian Trade, FMMO

Posted on by Rachel Ravencraft

NMPF Executive Vice President, Policy Development & Strategy Jaime Castaneda discusses potential dairy trade issues between the U.S. and Colombia, the latest on FMMO updates, and common food names with host Jesse Allen on this Agriculture of America podcast.

NMPF, USDEC Urge U.S. Government to Preempt Colombian Trade Barriers

Posted on by Rachel Ravencraft

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) are asking the U.S. government to prepare a plan to “leverage all available tools” should Colombia move forward with imposing countervailing tariffs on U.S. milk-powder exports, making that request in a letter sent Friday to U.S. Trade Representative Katherine Tai and U.S. Agriculture Secretary Tom Vilsack.

NMPF and USDEC also commended a complementary Congressional letter sent Friday to Colombian Ambassador to the United States Luis Gilberto Murillo in response to the investigation. Led by Reps. Jim Costa, D-CA, Adrian Smith, R-NE, Jimmy Panetta, D-CA and Dusty Johnson, R-SD, the letter highlights that the U.S. and Colombian dairy industries should be working collaboratively to promote policies that strengthen the dairy sector instead of launching “damaging protectionist investigations.”

Colombia’s recent decision to initiate an unwarranted Subsidies and Countervailing Measures investigation into U.S. exports of milk powder  is a tariff threat without merit, USDEC and NMPF say in the letter, noting that no causal link exists between U.S. milk powder exports and the injury alleged by Colombian officials. The letter also explains that imported milk powder products and domestically produced fluid milk are not interchangeable ingredients in a food manufacturing facility.

“The U.S.-Colombia Free Trade Agreement has been a success story for American and Colombian producers and consumers alike,” said Krysta Harden, president and CEO of USDEC. “Initiating unfounded investigations undermines this progress and is a step backward in our trade relationship. We appreciate the Ag Trade Caucus leaders for recognizing this investigation for what it is – baseless. USDEC commends the U.S. interagency team for their extensive work on the ongoing investigation and will continue to work closely with the U.S. government and Congress as the legal process moves forward.”

“NMPF appreciates Representatives Costa, Smith, Panetta and Johnson for standing up for American dairy producers’ market access rights,” said Gregg Doud, president and CEO of NMPF. “We will continue working with the U.S. government to ensure this unsubstantiated investigation doesn’t set a dangerous precedent.”

NMPF, USDEC Expand Strong Partnerships in South America

Posted on by Rachel Ravencraft

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) advanced a pair of partnerships in South America this week. The organizations signed a Memorandum of Understanding (MOU) with Abraleite, a prominent Brazilian milk producers association, and renewed an existing MOU with Argentine farmer organization Sociedad Rural Argentina (SRA).

The agreements enhance cooperation between the United States and South American dairy industries, focusing on critical areas such as the economic and social significance of the dairy sector and the removal of trade barriers affecting both producers and consumers.

“Our engagements in South America this week underscored the shared challenges and opportunities facing dairy producers and processors in the United States, Brazil and Argentina,” said Krysta Harden, president and CEO of USDEC. “Partnerships with likeminded organizations have been proven to be crucial as we strive to promote the benefits of dairy on the international stage and tackle attempts to erect trade barriers throughout the Americas.”

The updated MOU with SRA includes the launch of a Sustainability and Trade Taskforce, an initiative to provide a balance to European policies that could unfairly impact producers in the United States and Argentina. Objectives include demonstrating that livestock production is a cornerstone of sustainable food systems and advocating for science-based trade policies.

“Dairy producers throughout the Western Hemisphere confront many of the same issues and priorities,” said Gregg Doud, president and CEO of NMPF. “We look forward to working alongside Abraleite and SRA to advance policies that promote dairy and limit trade barriers.”

The two MOUs follow a partnership signed on June 4 with the Colombian dairy organization Asoleche. The partnership formalized USDEC and NMPF’s prior collaboration with Asoleche, demonstrating the value in focusing on areas of common ground, in contrast to the  politically driven countervailing duty investigation into U.S. milk powder exports recently initiated by the Colombian government.

In addition to the Latin American partnerships in Argentina, Brazil, and Colombia, USDEC and NMPF have also established MOUs with the Inter-American Institute for Cooperation on Agriculture (IICA) and the Chilean Federacion Nacional de Productores de Leche (Fedeleche).

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