NMPF Leads Fight Against Colombian Investigation, Tariffs
October 2, 2024
NMPF and the U.S. Dairy Export Council called on the U.S. government to respond forcefully to the Colombian government’s Sept. 16 provisional decision to impose an additional 4.86% tariff on milk powder imports from the United States as part of its politically motivated Subsidies and Countervailing Measures investigation.
The decision alleges without any credible evidence that the United States has unduly subsidized milk powder exports, damaging Colombian dairy producers. Since the announcement of the subsidies and countervailing measures investigation in July, NMPF and USDEC have aligned efforts with their members and the U.S. government to respond to Colombia’s questionnaires, strongly rejecting the investigation’s allegations and arguing that:
- The benefits of the alleged subsidies to U.S. dairy producers identified by the Colombian Investigative Authority were calculated incorrectly. In multiple cases, benefits were assigned from programs that were no longer in force by 2023 or assigned in a manner contrary to World Trade Organization rules;
- The methodologies for both the transfer of the alleged subsidies to U.S. milk powder producers and the conversion factors from fluid milk to milk powder as proposed by the Investigative Authority were incorrect;
- Due to different physical characteristics and end uses, Colombia failed to demonstrate that milk powder imports originating in the United States are comparable to fluid milk produced in Colombia, a key similarity element required in countervailing duty cases; and
- There is no evidence that the domestic Colombian industry has suffered injury as a result of imports of milk powder originating in the United States.
NMPF and USDEC have pushed the U.S. government to immediately and forcefully respond to the unwarranted tariffs.
The tariffs, it’s important to note, are only preliminary. Colombia will consider whether to increase, decrease or eliminate them as the investigation moves forward. NMPF will continue to participate in the subsidies and countervailing duty investigation, including by participating in an Oct. 3 hearing on the case, and engage political allies as needed.
Please contact Jaime Castaneda at jcastaneda@nmpf.org with any questions about this investigation.
