NMPF’s Morris Testifies Before USTR

Tag: dairy trade

NMPF’s Morris Testifies Before USTR

Posted on by Theresa Sweeney

NMPF Executive Vice President for Trade Policy and Global Affairs Shawna Morris testified at a hearing of the U.S. Office of the Trade Representative (USTR) Feb. 19, outlining the European Union’s misuse of Geographical Indication systems to monopolize generic terms such as “parmesan.”

Morris urged the U.S. government to proactively establish protections for common names and address the European Union’s GI campaign through the new U.S. “fair and reciprocal tariff plan.”

Morris was testifying on behalf of the Consortium for Common Food Names, which NMPF staffs. CCFN also on Jan. 27 submitted comments on the issue as part of the agency’s annual Special 301 Review, which is used to set USTR’s intellectual property agenda.

Doud Calls for Greater Trade Enforcement in Congressional Hearing, Ag Outlook Forum

Posted on by Theresa Sweeney

NMPF President and CEO Gregg Doud told members of the House Ways & Means Trade Subcommittee on Feb. 25 that the U.S. government needs to make sure trade agreements are enforced, benefiting dairy producers, workers, and shippers who rely on exports.

“In addition to pursuing greater market access, Congress and the administration have a responsibility to work together to enforce existing U.S trade agreements,” Doud said in his oral remarks. “Trade enforcement is not a matter of political or legal technicalities. We have seen that inadequate enforcement has real-world consequences by restricting opportunities for American farmers.”

Exports are indispensable for U.S. dairy farmers and workers, Doud said in the opening of his testimony. Most of those dairy exports are shipped to markets where the United States has an existing bilateral trade agreement—underscoring the need for an initiative-taking U.S. trade agenda. Doud urged policymakers to pursue trade policies that empower U.S. dairy to compete with the European Union and New Zealand, who have benefited from increased market access from recent trade agreements made by their governments.

Priority U.S. trade agreements for enforcement and focus include the U.S.-Mexico-Canada Agreement (USMCA), Doud said. Roughly 44 percent of U.S. dairy exports are shipped to USMCA partners, illustrating why it is critical to ensure that Canada and Mexico are in full compliance and that the United States maximize dairy export opportunities with both partners, he said.

Doud in both written and oral testimony outlined specific USMCA enforcement issues the United States should prioritize, including Canada’s misadministration of its tariff-rate quota system and circumvention of dairy protein export caps. Doud emphasized the need for new deals that cut tariffs, tackle nontariff trade barriers, and are vigorously enforced.

A link to his written testimony can be found here.

Doud later that week spoke at the USDA’s annual Agricultural Outlook Forum, elaborating on his testimony with an overview of U.S. trade relationships around the world, specifically calling out the European Union for misusing rules and protections to shield their markets from U.S. farmers.

“If I say anything nice about the way Brussels does ag, it was completely by mistake,” he said. “I think it is also reasonable to assume its own farmers have the same opinion.”

Later that day Doud joined a roundtable discussion hosted by the House Agriculture Committee to discuss how Congress and the Trump Administration can promote trade policies that best support the dairy and agricultural industries.

NMPF’s Statement on Jamieson Greer’s Confirmation as U.S. Trade Representative

Posted on by Theresa Sweeney

From Gregg Doud, President and CEO of NMPF:

“On behalf of the U.S. dairy industry, congratulations to Jamieson Greer on his confirmation as U.S. Trade Representative.

Exports play an indispensable role in supporting America’s dairy farmers and workers across the country. As I know first-hand from my prior work with him at USTR, Ambassador Greer will be a strong advocate for American farmers and American-made products. His talents as a trade lawyer are exceptional. We are eager to work with him and his team to secure opportunities for U.S. dairy producers to compete on a level global playing field and grow export markets.”

NMPF’s Doud Urges More Dairy Trade Opportunities Before Subcommittee

Posted on by Theresa Sweeney

Gregg Doud, president and CEO of the National Milk Producers Federation (NMPF), told the House Ways and Means Trade Subcommittee today that expanding market access and enforcing existing trade agreements to America’s dairy producers, workers and exporters is of paramount importance.

“To keep up with our competitors from Europe and New Zealand, U.S. dairy exporters need new trade deals that cut tariffs and tackle nontariff trade barriers,” Doud said in his written testimony. “Whether the U.S. government prioritizes the enforcement the trade agreements it has negotiated and addresses trade barriers targeting U.S. exports will determine whether American farmers and workers will actually benefit from the market access that has and will be promised.”

The U.S. dairy industry last year exported close to $8.3 billion in dairy products overseas, supporting thousands of jobs across the country, despite competing against global counterparts who benefit from more recent and expansive trade agreements. Doud highlighted the critical role of existing U.S. trade agreements and called on Congress and the Trump Administration to pursue and enforce trade policies that empower the U.S dairy industry to grow its business internationally.

Doud also detailed specific agreements for the U.S. government to prioritize greater enforcement, including:

  • Fixing the United States’ deeply imbalanced agricultural trade relationship with the European Union.
  • Ensuring Canada holds up its end of the bargain on dairy in USMCA by fixing both the export issues into Canada and the excessive offloading of artificially low-price Canadian dairy protein into the U.S. and global markets.
  • Following through with China on increasing its purchases of U.S. dairy products, ensuring timely facility listing updates, and providing protection for common names.
  • Resolving India’s longstanding high tariffs and unscientific certification requirements.

“Our competitors are not slowing down,” Doud said. “They are targeting highly valuable and important dairy markets, with the backing of their governments’ proactive trade agendas. We are hopeful that the U.S. government will take this as a challenge to stand up for U.S. dairy and U.S. agriculture. Our farmers deserve a level playing field and are counting on their government to deliver.”

Port Labor Strife Resolution Welcomed

Posted on by Theresa Sweeney

Following engagement from NMPF and USDEC with the Biden Administration and the then-incoming Trump team, the International Longshoremen’s Association (ILA) and United States Maritime Alliance reached a tentative six-year contract on Jan. 8 for the United States’ East and Gulf Coast ports, avoiding a damaging strike for dairy exporters.

While the agreement is still pending ILA ratification, the deal averted a strike that was authorized to begin on Jan. 15.

The agreement came after NMPF, USDEC, and more than 50 additional leading U.S. agriculture organizations sent letters to President Biden and then President-elect Trump on Dec. 19, calling for the federal government to help ensure a lasting resolution to the labor negotiations that had reached a stalemate.

In the letters, NMPF and the co-signers detailed the extensive damage that resulted from the previous strike, which lasted from Oct. 1-3. Initially, shipments were paused to prevent a backlog and then proceeded at a below average pace once the ILA agreed to extend their existing contract until Jan. 15, 2025. An estimated $13.5 million in U.S. dairy exports were affected, with members reporting cancelled sales and costly reroutes due to the disruptions.

NMPF engaged with USDA leading up to the contract deadline in January, sharing dairy exporter needs and urging the administration to avoid any potential port labor strikes.

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.

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