U.S. Dairy Organizations Testify Before USITC on Global Policies Affecting Dairy Markets

National Milk Producers Federation (NMPF) and U.S. Dairy Export Council (USDEC) Executive Vice President for Policy Development & Strategy, Jaime Castaneda, and Senior Vice President for Global Economic Affairs, Will Loux, testified today before the U.S. International Trade Commission (USITC) on the need for the U.S. government to hold trading partners accountable for policies that disrupt global markets for nonfat milk solids products and harm U.S. dairy producers and exporters. Chief among those concerns were Canadian dairy policies.

Throughout the hearing, Castaneda and Loux highlighted how trade distorting policies and subsidies from Canada, India, Turkey, the European Union, and others have driven artificially low-priced exports from those competitors onto global markets, undercutting U.S producers. The remarks complemented a set of in-depth comments filed on July 16.

“The U.S. is an extremely competitive player in world dairy markets,” said Castaneda. “However, Canada’s actions are one of the major policy factors undermining fair competition in those markets. We encourage this investigation to include a focus on the full breadth of trade distorting policies that Canada and other major suppliers employ that can undercut U.S. producers and exporters. It is critical that the United States takes steps to curb these anticompetitive practices during the 2026 USMCA review process.”

The hearing was part of an ongoing USITC investigation into the global nonfat milk solids market and export competitiveness. As requested by the U.S. Trade Representative, the inquiry and subsequent report will analyze government policies and programs that Canada and other major suppliers maintain that affect the production and exports of nonfat milk solids products from major dairy producing countries. NMPF and USDEC have been urging the U.S. government to take steps to address Canada’s continued attempts to circumvent its trade commitments that were intended to limit the offloading of artificially low-priced dairy proteins onto the global market. USTR’s initiation of this investigation was a key step in that direction.

“Canada’s exports of protein concentrates and isolates have more than doubled since the implementation of USMCA,” said Loux in his remarks. “India’s subsidized SMP exports were as high as 45,000 metric tons in 2021 and were sold at a 10% discount compared to the global average. Turkey’s whey exports—which have quadrupled in the last two years by selling at roughly half the global average—are increasingly moving beyond the Middle East and into critical export markets for U.S. manufacturers, including Southeast Asia and China. It is essential that the United States push back against dishonest trade practices and ensure that U.S. dairy producers can compete on a level playing field around the world.”

USITC is scheduled to submit its report to USTR by March 23, 2026.

Complementing this effort, NMPF and USDEC are dedicated to working with the Administration and Congress to leverage the investigation’s findings through the 2026 USMCA Review process to ensure that U.S. dairy producers are delivered the market access they were promised and fully benefit from the agreement moving forward.

U.S.–Mexico Dairy Summit Yields Renewed Commitment to Growth and Collaboration

The U.S. and Mexican dairy sectors renewed a partnership and unveiled a work plan today to enhance industry collaboration at their seventh annual summit convened this week in Madison, Wisconsin. The industry representatives reaffirming their shared commitment to strengthening bilateral collaboration and supporting the long-term success of the North American dairy industry.

Led by the U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) on the U.S. side, and by the Confederación Nacional de Organizaciones Ganaderas (CNOG), Asociación Mexicana de Productores de Leche (AMLAC), Cámara Nacional de Industriales de la Leche (CANILEC), and Consejo Nacional Agropecuario (CNA) from Mexico, the summit culminated in the signing of a renewed commitment and a shared work plan designed to foster mutual growth and resilience.

The joint plan identifies key areas for cooperation, including:

  • Promoting science-based trade policies that facilitate fair and transparent dairy trade across borders,
  • Enhancing animal health coordination, with a focus on proactive risk mitigation and information sharing,
  • Defending dairy’s reputation and promoting its nutritional benefits across both countries and in global markets,
  • Supporting sustainability and innovation efforts within the sector.

“Challenges like trade instability and animal health threats aren’t localized. They extend beyond borders, which is why working together is essential,” said Krysta Harden, president and CEO of USDEC. “Mexico continues to be a crucial ally for the U.S. dairy industry. These meetings not only reinforce our partnership but also help us prepare for a stronger, more resilient future.”

Recognizing the increasingly interconnected nature of the global dairy industry, the U.S. and Mexican representatives underscored the importance of continuing to work together to address shared challenges—from trade uncertainty and supply chain disruptions to animal health threats like H5N1 and New World screwworm and evolving consumer expectations.

“The U.S. and Mexico dairy sectors share a common goal: to expand market opportunities and protect consumer confidence in dairy,” said Gregg Doud, president and CEO of NMPF. “Today’s renewed agreement deepens our partnership as we address the shared challenges our industries face.”

NMPF Plays Leading Role at U.S.-China Ag Forum

Jaime Castaneda, NMPF Executive Vice President for Policy Development and Strategy, traveled to Beijing and Shanghai on Nov. 1-7 to promote the competitiveness and sustainability of the U.S. dairy industry at the U.S.-China Agricultural Trade Cooperation Forum.

Castaneda began the trip meeting with Chinese trade associations to discuss the country’s high agricultural tariffs and other challenges faced by U.S. companies. He then spoke at the forum alongside representatives from other U.S. commodity groups and met with U.S. and Chinese government officials to discuss barriers to trade—including high tariffs, geographical indications restrictions and dairy facility listing requirements.

Castaneda also presented at the Global Dairy Forum hosted by the China International Import Expo, the world’s largest import-themed national-level conference. The event featured a panel discussion with other agricultural organizations and a group media interview. Throughout all discussions Castaneda emphasized that the U.S. dairy industry is committed to the Chinese market and advocated for better trade conditions that will allow American exporters to compete and succeed.

U.S. Government Plows Ahead on Canadian USMCA Compliance

NMPF lauded the administration’s Jan. 31 announcement that the U.S. had requested a second U.S. Mexico Canada Agreement (USMCA) panel to evaluate Canada’s compliance with its USMCA dairy market access obligations. The decision pushes forward the dispute settlement process, slightly more than a month after the U.S. requested consultations with Canada on an expanded set of USMCA dairy tariff-rate quota (TRQ) commitment violations.

Since USMCA’s implementation, Canada has continually flouted the agreement’s TRQ provisions, giving preferential treatment to Canadian processors at the expense of American dairy exporters and Canadian consumers. When this breach was initially confirmed by the first USMCA dispute panel, Canada responded by making only insignificant changes to its TRQ policies. This latest move challenges the persistent problems remaining in Canada’s dairy TRQ system.

NMPF and USDEC have worked closely with the U.S. Trade Representative and USDA throughout the dispute to support their case and demonstrate Canada’s lack of compliance with its USMCA commitments.

U.S. Dairy Praises USTR Move to Hold Canada Responsible for USMCA Violations

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) commended today’s announcement that the U.S. Trade Representative has formally moved to advance a U.S.-Mexico-Canada Agreement (USMCA) dispute settlement proceeding and establish a second panel to determine whether Canada has been in violation of its market access obligations under the agreement.

Canada’s unwillingness to abide by the tariff-rate quota provisions of USMCA has been an issue since the agreement’s implementation began. The United States won its first dispute panel on the matter in Dec. 2021, which found that Canada was reserving most of its preferential dairy TRQs for Canadian processors that have little incentive to import product. Canada’s revised approach to USMCA TRQs, released in May, also provided inequitable advantages to Canadian processors.

“Canada’s TRQ allocation system is not only a violation of USMCA — it directly harms American dairy farmers, processors, and other workers by unfairly restricting access to their market,” said Jim Mulhern, president and CEO of NMPF. “USTR’s action is an important step in righting this wrong and sending a message that the U.S. will fight violations of trade deals in Canada and wherever else they may be committed.”

“The U.S. dairy community greatly appreciates the Biden Administration’s decision to prioritize steps to address Canada’s USMCA violations,” said Krysta Harden, president and CEO of USDEC. “Unfortunately, Canada has shown a pattern of not living up to the dairy commitments it has made in trade agreements. As long as they continue to drag their feet, we’ll continue to work with USTR and USDA to fight back, and propose retaliatory action if necessary.”

If the panel ultimately confirms that Canada has been violating its obligations under USMCA, the U.S. would be granted the right to impose retaliatory duties should Canada fail to fix its unfair TRQ administrative practices.

NMPF, USDEC Strengthen Ties Throughout Latin America

NMPF, USDEC and Sociedad Rural Argentina (SRA) announced an agreement Sept. 8 to foster cooperation between the three groups to advocate for science-based regulations across food and agricultural trade policy. SRA, a civil association of agricultural landowners, is an influential economic and political player in Argentina, and will be a valuable partner in advocating for international food policy priorities.

NMPF and USDEC built on the momentum with an agreement finalized Sept. 30 with the Chilean Federacion Nacional de Productores de Leche (Fedeleche). The memorandum of understanding places an emphasis on improving mutual understanding through conferences, seminars and events so that the three organizations can collaborate in fighting for clear, fair, science-based rules.

These latest developments complement the long-standing relationship NMPF and USDEC have cultivated with the Pan-American Dairy Federation (FEPALE), which held its 16th Congress in Quito, Ecuador, Oct. 19-21. NMPF Executive Vice President for Policy Development & Strategy Jaime Castaneda presented on behalf of FEPALE member USDEC at its Board of Directors meeting, supporting collaboration and joint work in international forums. Castaneda discussed supplemental partnership opportunities with dairy farmers in Ecuador that would increase dairy consumption and bilateral trade.

NMPF and USDEC look forward to continuing to expanding and collaborating with their regional partners to promote and defend the image of dairy and increase trade.