Tag: USMCA dairy

USMCA Dairy Enforcement in Focus

Posted on by Theresa Sweeney

As NMPF continues to reiterate to the U.S. government the need for greater market access opportunities for U.S. dairy, the Trade Policy team is highlighting a need for strong enforcement of agreements already in place to ensure American dairy producers are provided the access already negotiated – notably the U.S.-Mexico-Canada Agreement (USMCA).

In two National Association of State Departments of Agriculture (NASDA) meeting sessions on Oct. 21 and 26 with state agricultural commissioners in October, NMPF staff highlighted the importance of the ongoing dispute settlement proceedings over Canada’s allocation and administration of dairy tariff-rate quotas that run counter to its commitments under the new trade pact. In addition, NMPF emphasized the need for diligence regarding Canada’s other USMCA dairy commitments and for a heightened focus on preserving smooth trade flows with our largest export partner, Mexico.

Dairy Farmers Reinforce Trade Priorities with Ambassador Tai at Agriculture Event Hosted by Rep. DelBene

Posted on by Theresa Sweeney

The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) today thanked Representative Suzan DelBene (D-WA) for hosting U.S. Trade Representative Ambassador Katherine Tai for a roundtable in Burlington, WA to discuss agriculture trade priorities. At the event, Washington farmers and food producers from various sectors, including dairy, raised the importance of implementing a trade policy that expands agricultural exports.

Washington dairy farmers Jeremy Visser and Mike Schoneveld, member-owners of USDEC and NMPF-member Northwest Dairy Association/Darigold, conveyed the importance of exports and global market access for the dairy industry. Visser and Schoneveld praised Rep. DelBene for her leadership on dairy trade issues to help expand opportunities for dairy in international markets.

“NMPF appreciates the hard work that Rep. DelBene has long undertaken to encourage trade policies that help expand American agricultural exports. Her recognition of the critical role that exports play for farmers’ incomes and the rural economy has been central to the pursuit of trade policies that help deliver value to American dairy farmers and expand jobs in America. Dairy farmers are grateful to Ambassador Tai for launching the dispute settlement case against Canada’s restrictive access to U.S. dairy and appreciate Rep. DelBene’s advocacy on this matter as well. At the same time, dairy farmers are also keen to see a proactive trade agenda of opening new markets around the world,” said Jim Mulhern, president and CEO of NMPF.

“As solid as our track record has been to date, America’s dairy industry has not reached its full trade potential on the global stage. Each dairy product that we export – whether it’s cheese, milk powder, or another essential dairy ingredient – has a powerful impact across the entire supply chain.  Expanding while also defending market share abroad is critical to U.S. dairy manufacturers and exporters, especially cheese exporters that are encountering barriers disguised by the European Union’s Geographical Indications agenda,” said Krysta Harden, president and CEO of USDEC. “We thank Rep. DelBene for hosting Ambassador Tai to hear from Washington’s agricultural sector directly on how to support that work through new trade agreements, enforcing trade agreements, and resolving trade barriers in other countries.”

NMPF Board Member Testifies Before Congress on USMCA

Posted on by Theresa Sweeney

NMPF Board of Directors member and Idaho dairy producer Allan Huttema testified July 27 before the Senate Finance Committee on U.S.-Mexico-Canada Agreement implementation and the importance of subsequent enforcement for dairy provisions.

Huttema, who also serves as chair of the Darigold and Northwest Dairy Association boards, highlighted the need for close monitoring of USMCA trade partners’ implementation of the trade deal – including Canada’s dairy tariff rate quota allocations and milk protein exports, and Mexico’s integration of common cheese name protections and its troubling increase of unwarranted regulatory barriers. During his testimony, he also stressed the critical importance of building on the progress initiated with USMCA by pursuing additional agreements with key dairy markets such as the United Kingdom and various Asian markets.

“It has been a very long time since Congress passed a new free trade agreement, aside from USMCA for which we are very grateful,” Huttema said in his testimony. “Our industry needs new trade agreements with key export markets to counter our competitors, namely the EU and New Zealand. As our competition continues to ink new trade deals, the United States is increasingly left in the dust.”

NMPF worked closely with Huttema and Northwest Dairy Association/Darigold to help strongly spotlight the dairy industry’s priorities and concerns during the hearing. Seven committee members raised dairy issues throughout the hearing including robust comments of support in the opening remarks of the Committee’s Chairman and Ranking Member. The Senators’ comments spanned the gamut including Canada compliance concerns, Mexican nontariff barrier issues, broader market access goals, and common names threats.

“NMPF and the dairy producers it represents are grateful to the Senate Finance Committee for inviting Allan to discuss the benefits that the USMCA has brought U.S. dairy producers and cooperatives,” said Jim Mulhern, President and CEO of NMPF. “But as Huttema said so well, adequate enforcement is necessary to ensure American dairy producers are provided the access promised in the agreement. We are grateful to the Senate Finance Committee members for their advocacy in support of the recently initiated dispute settlement proceedings over Canada’s dairy tariff rate quotas (TRQs) – a critical step in enforcement of this agreement.”

Idaho Dairy Producer Testifies Before Congress on USMCA Enforcement Importance

Posted on by Theresa Sweeney

National Milk Producers Federation (NMPF) Executive Committee member Allan Huttema said USMCA enforcement is essential for the agreement to reach its potential for U.S. dairy farmers in testimony today at a U.S. Senate Finance Committee hearing on the impact of the U.S.-Mexico-Canada Agreement (USMCA) on U.S. dairy. Huttema operates an 800-cow dairy in Parma, Idaho and serves as chair of the Darigold and Northwest Dairy Association boards, both of which are NMPF and U.S. Dairy Export Council (USDEC) members.

“I thank Chairman Wyden and Ranking Member Crapo, my own senator, for extending me the opportunity to discuss the impact the USMCA has had on my farm and the thousands of other dairy farms throughout the country,” said Huttema. “Enforcement of trade agreements like USMCA is important to ensure we retain the ability to supply high-quality cheeses, milk powders and a variety of other dairy products to customers around the world.”

“NMPF and the dairy producers it represents are grateful to the Senate Finance Committee for inviting Allan to discuss the benefits that the USMCA has brought U.S. dairy producers and cooperatives,” said Jim Mulhern, President and CEO of NMPF. “But as Huttema said so well, adequate enforcement is necessary to ensure American dairy producers are provided the access promised in the agreement. We are grateful to the Senate Finance Committee members for their advocacy in support of the recently initiated dispute settlement proceedings over Canada’s dairy tariff rate quotas (TRQs) – a critical step in enforcement of this agreement.”

The $6.5 billion worth of U.S. dairy products exported each year underpins the economic health of dairy producers, processors, and manufacturers across the United States. American dairy exports create more than 85,000 direct jobs and have a nearly $12 billion economic impact. Whether it is Canada’s TRQ administration or Mexico’s array of new regulations intended to limit imports, NMPF and USDEC have urged the U.S. government to ensure the USMCA is fully enforced. Enforcement secures the access extended to U.S. dairy producers in the USMCA and sends a strong message to other U.S. trading partners that attempts to subvert trade obligations will not be tolerated.

“The U.S. Dairy Export Council appreciates the Senate Finance Committee and its members for hearing Allan’s testimony and answers regarding the importance of the USMCA and new trade opportunities to the U.S. dairy industry,” said Krysta Harden, President and CEO of USDEC. “USDEC agrees with Allan regarding the need to pursue greater market access opportunities for high-quality American dairy products that our international consumers demand. USMCA was an important step forward, but it’s not enough. We need new trade agreements to expand on Congress’ hard work in passing USMCA. The EU is filling the vacuum that American trade policy is leaving – an issue that Congress needs to address with additional market opportunities for U.S. exports. We appreciate Allan sharing his insight and concerns with the agreement’s implementation and its impact on dairy farmers, processors and manufacturers throughout the United States.”

U.S. Dairy has “Big Wide World” of Trade Opportunity, NMPF’s Morris Says

Posted on by Theresa Sweeney

All of agriculture will benefit from U.S. insistence that trade agreements be enforced, even as dairy seeks export opportunities around the globe, says Shawna Morris, NMPF’s Senior Vice President for Trade.

“Having the willingness to be able to go ahead and enforce what’s needed when it becomes clear that, that’s what’s required, we think sets a good tone,” said Morris in a Dairy Defined podcast released today, referring to the U.S. Trade Representative’s recent decision to pursue a dispute settlement over Canadian practices related to the USMCA trade deal.

Meanwhile, even as existing agreements need enforcement, new deals must be pursued, she said. “One of the biggest things that’s on our radar is simply the drum beat about the importance of pursuing new market opportunities,” she said. “USMCA is a piece of that. We want to make sure the market opportunities we got in that agreement just last year, we maximize, but it’s a big wide world out there.”

The full podcast is here. You can also find the podcast on Apple Podcasts, Spotify and Google Podcasts. Broadcast outlets may use the MP3 file. Please attribute information to NMPF.

 

NMPF Offers Support to USTR Katherine Tai to Expand Markets

Posted on by Theresa Sweeney

NMPF Chairman Randy Mooney and President and CEO Jim Mulhern met with U.S. Trade Representative Katherine Tai on May 3 to discuss the dairy industry’s trade policy priorities.

Issues addressed included the importance of expanding market access opportunities around the world for American dairy products and enforcement our agreements, including ensuring Canada fully implements its tariff-rate quotas for U.S. dairy consistent with the U.S.-Mexico-Canada Agreement (USMCA). Mooney and Mulhern also raised concerns with EU policies that restrict the use of common food names by American cheese producers.

In a follow-up letter to Ambassador Tai, NMPF laid out how the dairy industry’s commitment to sustainable dairy production and the real-world progress America’s dairy farmers have made to reduce greenhouse gas emissions can further USTR’s climate and sustainability goals if more export opportunities are available to U.S. dairy products.

NMPF, working with the U.S. Dairy Export Council, continues to advocate for the importance of opening and expanding global markets, enabling American dairy farmers to compete on a level playing field and meet the world’s dairy needs with high-quality, sustainable products.

Dairy Industry Applauds USTR Decision to Pursue USMCA Dispute Settlement Case Enforcing Dairy Market Access Obligations in Canada

Posted on by Theresa Sweeney

The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) praised today’s announcement that U.S. Trade Representative Katherine Tai has initiated a U.S.-Mexico-Canada Agreement (USMCA) dispute settlement proceeding over Canada’s administration of dairy tariff rate quotas (TRQs).

USDEC and NMPF have been calling for full enforcement of Canada’s trade obligations given Canada’s ongoing refusal to change how it handles dairy market access under USMCA. Initiating an official dispute settlement will, under USMCA rules, establish a panel to determine whether Canada has been violating its trade obligations. If the panel determines a lack of compliance, the U.S. would then be granted the right to impose retaliatory duties if Canada fails to fix its problematic TRQ administrative practices.

“On behalf of America’s dairy farmers, we thank Ambassador Katherine Tai for initiating the USMCA dispute settlement process by requesting the formation of a panel to examine Canada’s failure to provide access to its dairy TRQs in accordance with USMCA,” said Jim Mulhern, NMPF President and CEO. “Canada has failed to take the necessary action to comply with its obligations under USMCA by inappropriately restricting access to its market. This needs to stop and we are thankful that USTR intends to make that happen.”

“Our appreciation goes to the Biden Administration for moving forward with a dispute settlement action against Canada’s administration of dairy TRQs,” said Krysta Harden, USDEC President and CEO. “We have had long-standing and well-founded concerns that Canada undermines its trade agreements when it comes to dairy. Our trading partners need to know that failure to meet their agricultural trade commitments with the United States will result in robust action to defend U.S. rights – today’s action demonstrates just that. The expansion of dairy market access opportunities is critical for our industry. Today’s action is a critical step toward maximizing current export opportunities while sending a strong message in defense against the erection of future barriers in Canada and other markets as well.”

USDEC and NMPF have carefully monitored Canada’s actions regarding its USMCA dairy commitments and have urged the administration and Congress to make this a priority as soon as USMCA entered into force. The organizations highlighted for USTR and the U.S. Department of Agriculture the inconsistencies between Canada’s dairy TRQ allocations and Canada’s USMCA obligations. In a detailed filing submitted to the administration, NMPF and USDEC provided the agencies with a specific review of the Canadian TRQ system and an explanation of the negative impacts resulting from them.

The concerns raised by USDEC and NMPF have been echoed by a broad bipartisan coalition of members of Congress. Most recently, several leading members of the House Ways and Means and Agriculture Committees joined together on a bipartisan message to USTR urging further enforcement action and multiple members of Congress shared a similar message during Amb. Tai’s trade oversight hearings in May. Prior to that, Senators broached the topic with USTR during Ambassador Tai’s confirmation hearing process. Last August, 104 Representatives sent a letter to USTR and USDA asking for Canada to be held accountable to its trade promises while a letter in the Senate was signed by 25 Senators. USDEC and NMPF commend the continued engagement of so many members of Congress on this important issue.

NMPF and USDEC Welcome Bipartisan Congressional Support to Enforce USMCA Dairy Provisions

Posted on by Theresa Sweeney

From Krysta Harden, president and CEO of the U.S. Dairy Export Council (USDEC) and Jim Mulhern, president and CEO of the National Milk Producers Federation (NMPF):

“On behalf of America’s dairy farmers, processors, and exporters we thank Representatives Ron Kind (D-WI), Tom Reed (R-NY), and their colleagues in both parties for their leadership in calling for USTR to fully enforce USMCA provisions on Canada’s administration of its dairy tariff rate quotas,” said Krysta Harden, President and CEO of the U.S. Dairy Export Council (USDEC). “Canada has failed to take the necessary action to be in compliance with its obligations under USMCA by restricting access to the TRQs.”

“We appreciate the bipartisan work from Members of Congress to support America’s dairy industry on this important trade issue,” said Jim Mulhern, President and CEO of the National Milk Producers Federation. “Canada’s failure to take action over the past six months to fix the administration of its TRQs limits the ability of American dairy farmers and workers to benefit from the access that was negotiated in the agreement.”

USDEC and NMPF have closely monitored Canada’s actions regarding its USMCA commitments even prior to the Agreement entering into force. Canada has allocated its TRQs in a manner designed to discourage full use of the TRQs and limit imports of U.S. dairy products. Specifically, Canada is reserving the bulk of quota access to processors, who have little incentive to import U.S. dairy products, and are not providing fair or equitable procedures in administering the TRQs.

Leading this effort with Reps. Kind and Reed were Representatives Antonio Delgado (D-NY), Glenn ‘GT’ Thompson (R-PA), Suzan DelBene (D-WA), Dusty Johnson (R-SD), Jim Costa (D-CA), and David Valadao (R-CA).

Both organizations fully support calls from Congress for USTR to move forward with further enforcement action to resolve this issue.