NMPF Executive Vice President Alan Bjerga speaks with RFD-TV about how all of agriculture needs to fight for the integrity of trade agreements in the wake of a USMCA dispute panel decision that failed to protect U.S. access to Canada’s market. The President’s Export Council, with member co-op Land O’Lakes representing farmers, discussed the importance of market access in a White House meeting on Wednesday. Bjerga also talked about the resumption of the USDA Federal Milk Marketing Order hearing in Indiana this week, and how repeated delays aren’t helpful for milk producers.
Tag: Canada
USMCA Dispute Panel Limits Canadian Market Access
Today’s ruling by a U.S-Mexico-Canada Agreement (USMCA) dispute panel allowing Canada to restrict the dairy access that the United States negotiated for in the USMCA pact weakens the agreement’s value to the US dairy industry, according to the National Milk Producers Federation and the U.S. Dairy Export Council.
An earlier panel ruled in January 2022 that Canada had improperly restricted access to its market for U.S. dairy products. In response, Canada made insufficient changes to its dairy tariff rate quota (TRQ) system, resulting in an outcome that still fell far short of the market access the U.S. expected to receive under USMCA. To address that shortcoming, the U.S. brought a second case to challenge the changes that Canada instituted. Today the panel announced that Canada was not obligated to make further changes.
“It is profoundly disappointing that the dispute settlement panel has ruled in favor of obstruction of trade rather than trade facilitation,” said Jim Mulhern, president and CEO of NMPF. “Despite this independent panel’s adverse ruling, we’d like to thank the Biden Administration and the many members of Congress who supported us for their tireless pursuit of justice for America’s dairy sector. We urge Ambassador Tai and Secretary Vilsack to look at all available options to ensure that Canada stops playing games and respects what was negotiated.”
Since the U.S. Trade Representative initially launched the first dispute settlement case against Canada in 2021, USDEC and NMPF have worked with USTR, USDA, and Congress to try to secure full use and value of USMCA’s dairy TRQs for American dairy producers and processors.
“By allowing Canada to ignore its USMCA obligations, this ruling has unfortunately set a dangerous and damaging precedent,” said Krysta Harden, president and CEO of USDEC. “We do however want to express our appreciation for allies in Congress and the Administration for their efforts and commitment to fighting for U.S. dairy. This is unfortunately not the only shortcoming in Canada’s compliance with its international commitments. We are committed to working with USTR and USDA to evaluate efforts to address Canada’s continued harmful actions that depress dairy imports while simultaneously evading USMCA’s dairy export disciplines.”
When first implemented in 2020, USMCA established 14 different TRQs, which allow a predetermined quantity of imports at a specified low tariff rate. The TRQ system that Canada implemented awarded the vast majority of TRQ volumes to Canadian processors and granted very limited access to TRQs to distributors – resulting in limited market access for U.S. exporters. Minor modifications to that system made in 2022 have continued that imbalanced approach.
NMPF’s Morris Talks Trade, Canada on Podcast
NMPF and USDEC Senior Vice President for Trade Shawna Morris discusses the need to hold accountable for its trade commitments on the Agriculture of America podcast. Canada’s improper allocations under its Tariff-Rate Quota system is impeding the market access promised U.S. dairy farmers under the USMCA trade agreement, making a legal remedy necessary. The U.S. needs to strongly defend its farmers, Morris said; while farmers are hoping for a fair solution with Canadian compliance, retaliatory tariffs against Canadian products may be necessary, she said.
NMPF’s Morris on Holding Canada Accountable
NMPF and USDEC Senior Vice President for Trade Shawna Morris discusses the latest round of conflict between the United States and Canada over over U.S. dairy access to that market. Morris praised the U.S. government’s willingness to take on Canada again after already winning on dispute before a USMCA dispute resolution panel. Morris speaks in an interview on RFD-TV.
NMPF’s Bjerga on Dairy’s Recent Policy Wins
As the year comes to a close, the National Milk Producers Federation is applauding two recent measures that support the dairy industry. NMPF Senior Vice President of Communications Alan Bjerga spoke with RFD-TV’s own Janet Adkison about how the Growing Climate Solutions Act and Sustains Act benefit dairy farmers, and what USTR’s announcement of a new request for dispute settlement consultations with Canada means for U.S. dairy.
https://www.rfdtv.com/two-recent-measures-from-congress-and-ustr-are-giving-a-boost-to-dairy-farmers
U.S. Dairy Salutes USTR’s Pursuit of Canadian USMCA Compliance
ARLINGTON, VA – The National Milk Producers Federation (NMPF) and U.S. Dairy Export Council (USDEC) commend the U.S. Trade Representative’s announcement today that it is filing a new request for dispute settlement consultations with Canada in order to expand the scope of the second U.S.-Mexico-Canada Agreement (USMCA) dairy dispute to include additional elements necessary to ensure that Canada fully complies with its USMCA obligations.
The initial USMCA dispute panel, launched by the United States in May 2021, found Canada in violation of USMCA’s tariff-rate quota (TRQ) provisions by reserving most of its preferential dairy TRQs for Canadian processors. In March 2022, Canada released its revised approach to USMCA TRQs, which still violated the USMCA, by providing inequitable advantages to Canadian dairy processors and failing to administer TRQs in a manner to ensure full use of TRQs as intended by USMCA. This prompted USTR to request formal consultations with Canada over the measures, the first step in bringing a second case before a USMCA dispute settlement panel.
Today’s actions are the culmination of months of painstaking work to evaluate the strongest basis for the United States’ case and find the best approach to bring Canada into compliance given its persistent violations.
“We thank USTR and USDA for their diligence in working to ensure that American dairy producers have the market access promised under USMCA. NMPF is committed to doing everything it can to support the case,” stated Jim Mulhern, president and CEO of NMPF. “At the end of the day, if Canada continues to flagrantly flout its obligations, the U.S. government has to be ready with retaliatory measures that make the Canadian government reconsider its actions.”
“It is deeply unfortunate that Canada simply refuses to honor the full terms of our agreement,” said Krysta Harden, president and CEO of USDEC. “USMCA is a fair deal that was thoroughly negotiated and agreed to by the Canadian government. The U.S. dairy community is thankful the administration and Congress have taken Canada’s violations seriously and are fighting for full export benefits that the American dairy industry earned.”
NMPF’s Morris on Infant Formula Shortage
NMPF Senior Vice President for Trade Shawna Morris discusses the current nationwide infant formula shortage and ways to solve the immediate crisis, speaking with the National Association of Farm Broadcasters. While temporary import increases can help alleviate short-term shortages, current problems involve supply-chain shortfalls doesn’t reflect a lack of inputs, she said: “The milk, the ingredients, that the plant would need in order to produce formula, no challenge there. Instead, what we have is a problem more on the processing capacity piece.”
NMPF’s Morris on U.S. Dairy’s Trade Win Over Canada
Shawna Morris, Senior Vice President for Trade with the National Milk Producers Federation and the U.S. Dairy Export Council, discusses U.S. dairy’s win over Canada in the first trade dispute ever brought before the USMCA’s dispute settlement panel on RFD-TV. The panel ruled against Canada in a case brought by the United States over its unfair allocation of quotas that limited U.S. dairy access to Canada agreed to as part of USMCA.
NMPF’s Morris on Canada and USMCA
NMPF’s Senior Vice President for Trade, Shawna Morris, discusses Canada’s latest efforts to evade the USMCA trade deal on the “Adams on Agriculture” podcast.
NMPF’s Bjerga Discusses CEO’s Corner, Trade Growth
NMPF’s Senior Vice President for Communications, Alan Bjerga, discusses NMPF’s “CEO’s Corner” for June, which deals with U.S. dairy’s growing leadership in sustainable dairy exports. The monthly thought-leadership series highlights key dairy issues of the day from an NMPF perspective and is part of the organization’s “Sharing Our Story” initiative that spotlights farmer voices and industry commentary. Bjerga spoke on WEKZ radio, Janesville, Wisconsin.
NMPF’s Bjerga on the Need for Trade Enforcement
U.S. dairy exports are at record levels, showing the potential of overseas markets. But trade integrity is necessary to expand dairy sales, making enforcement of the USMCA trade agreement a must, NMPF Senior Vice President of Communications Alan Bjerga said on RFD-TV.
NMPF’s Morris on Canada’s Anti-Dairy Trade Practices
NMPF Vice President for Trade Shawna Morris discusses recent U.S. Trade Representative action to bring Canadian dairy-trade policy into compliance with the USMCA trade deal on the “Adams on Agriculture” podcast.
