Dairy Industry Applauds USTR Action to Address Canadian TRQ Violations

The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) applaud today’s announcement that the U.S. Trade Representative (USTR) will initiate official consultations with Canada to examine the administration of its dairy Tariff Rate Quota (TRQ) obligations. The two organizations, with strong bipartisan backing from Congress, have long raised the alarm about the need to ensure the United States-Mexico-Canada Agreement (USMCA) is fully enforced, due to Canada’s history of undermining its trade commitments.

“USMCA is designed to improve trade with Canada, while modifying some of Canada’s trade-distorting dairy policies. We knew from day one that enforcement would be key to bringing the intended benefits home to America’s dairy industry. I applaud USTR for hearing our concerns and relying on our guidance to take this critical enforcement step to ensure that the agreement is executed in both letter and spirit,” said Tom Vilsack, president and CEO of USDEC. “This is the critical first step, but more work may be needed to ensure Canada complies with its Class 7 related USMCA commitments as well.”

Even prior to its entry into force, USDEC and NMPF monitored Canada’s actions regarding its USMCA commitments and urged Congress and the administration to make this a priority as soon as USMCA entered into force. Canada has distorted its TRQ administration to limit imports from the U.S. Earlier this year, USDEC and NMPF highlighted for USTR and the U.S. Department of Agriculture (USDA) 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 legal review of the Canadian TRQ system and an explanation of the negative impacts resulting from them.

“America’s dairy farmers appreciate USTR’s commitment to the fair and transparent enforcement of USMCA. Enforcement has been one of the top priorities of our industry since the final agreement was announced, and we’ve worked diligently to ensure that it remains one of USTR’s top priorities, as well. Only when Canada is held fully accountable to its trade commitments will America’s dairy farmers be able to realize the full benefit of the provisions that the U.S. government worked so hard to secure,” said Jim Mulhern, president and CEO of NMPF. “We look forward to working closely with the incoming administration as well since enforcement efforts are likely to require sustained focus going forward.”

The concerns raised by USDEC and NMPF have been echoed by a broad bipartisan coalition of members of Congress. In 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.

Bipartisan Congressional Letter Calls for Stronger U.S. Approach to Preserving Common Food and Wine Terms

A coalition of leading farm and agricultural groups are applauding a bipartisan letter sent today by 111 members of Congress urging stronger protections for American-made food and wine exports using common terms. This is an important message regarding the need for enhanced U.S. efforts to combat the European Union’s (EU) attempts to ban U.S. exports of cheese, meat and wine products that are labeled with common terms – such as parmesan, bologna or chateau.

“Congress has spoken loudly; it is time for stronger action by the U.S. government. For far too long, Europe has used unjustified trade barriers to block competition from high-quality American-made cheese, meat and wine exports. Europe is undermining global trade rules and weakening intellectual property system protections internationally. Today’s letter is an important reminder that we must raise the bar in our efforts in order to prevail in creating agricultural trade policy that works for the world, not just the European Union,” said Jaime Castaneda, Executive Director of Consortium for Common Food Names.

The letter asks the U.S. Trade Representative (USTR) and U.S. Department of Agriculture (USDA) to make safeguarding common food and wine terms a core policy objective in all current and future trade negotiations. The effort was led by Reps. Jim Costa (D-CA), Jodey Arrington (R-TX), Angie Craig (D-MN), Dusty Johnson (R-SD), Ron Kind (D-WI), Mike Gallagher (R-WI), Jimmy Panetta (D-CA) and Mike Kelly (R-PA).

“The EU’s ban on common cheese terms has already impeded U.S. dairy exports but even more severe consequences for our industry lie ahead if the EU is allowed to continue these unfair trade practices. Preserving export opportunities for American-made cheeses and other products labeled with common terms must take priority in all future trade negotiations. I applaud Congress and the leaders of this effort for setting this important precedent in defense of American-made exports,” said Tom Vilsack, president and CEO of U.S. Dairy Export Council.

“Creating false barriers to block exports denies families around the world the high-quality food America’s farmers and ranchers produce. It’s trade manipulation. We applaud the U.S. government for its efforts to remove unfair trade practices that keep our nation from competing in the global marketplace,” said American Farm Bureau Federation President Zippy Duvall.

“The European Union has for too long unjustifiably and erroneously attempted to restrict trade in common food name products, including meat exports from the U.S. The policy advocated in the bipartisan letter sent today to USDA and USTR will advance critical safeguards for common food name products in international trade and will enable America’s meat and poultry packers and processors, agricultural producers and food manufacturers to compete on a level playing field with their counterparts in the EU. We thank members of Congress for their leadership, and we stand ready to work with the Administration to defend against anti-competitive and protectionist policies pursued by trading partners that serve only to impede U.S. meat and poultry exports,” said Julie Anna Potts, CEO of the North American Meat Institute.

“NASDA Members work tirelessly with the federal government to open new doors for agricultural producers around the world. We encourage the U.S. Trade Representative (USTR) and U.S. Department of Agriculture (USDA) to amplify the importance of common food and wine terms as a core policy objective to successful free trade negotiations in the future. Doing so will ensure consumers are able to access the full bounties of our farmers and ranchers around the world,” said National Association of State Departments of Agriculture CEO Dr. Barb Glenn.

“America’s dairy farmers have been unduly harmed by the EU’s efforts to limit market opportunities for U.S. dairy products. For years, the EU has sought to ban high-quality American-made cheeses, putting U.S. dairy jobs at risk and limiting economic growth in the rural communities that rely on a healthy dairy industry.  I appreciate the important work being done by Congress to ensure that U.S. trade negotiators must have all necessary tools at their disposal to fight back against the EU’s destructive agenda,” said Jim Mulhern, president and CEO of National Milk Producers Federation.

“We have watched time and again as the EU has gone well beyond protecting legitimate GIs to erect trade barriers that benefit their own producers at our expense. The recent EU-China agreement on GIs is a perfect example of how the EU abuses GIs for their own gain. The U.S. must do more to ensure a level playing field for common food names, grape varietal names and traditional terms and we are grateful to these Representatives for supporting this effort,” said Bobby Koch, President and CEO of Wine Institute.

In July, 61 Senators sent a similar letter requesting that the U.S. government enhance protections for common food and wine terms.

 

U.S. Dairy Exports to Benefit from New USDA-FDA Partnership

The U.S. Department of Agriculture (USDA) and Food and Drug Administration (FDA) today signed a Memorandum of Understanding (MOU) that will establish an interagency process to further support exports of U.S. dairy products. Both agencies play critical roles in facilitating foreign sales of American-made dairy products, which is recognized and appreciated by the U.S. dairy industry. This MOU will draw upon the expertise of FDA as well as USDA’s Agricultural Marketing Service (AMS) and Foreign Agricultural Service (FAS) to deepen and streamline their work together on the issues facing dairy exports to the benefit of U.S. dairy farmers and manufacturers.

The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) worked with both agencies to advance this new approach to dairy export collaboration. NMPF and USDEC deeply appreciate the USDA and FDA’s dedication to drafting this new MOU to facilitate U.S. dairy exports and their ongoing collaboration with the dairy industry. Foreign competitors are making advances in international markets, making efforts to expand overseas opportunities for U.S. dairy critical to the long-term health of U.S. dairy farmers and processors.

“Today’s announcement of an interagency MOU on dairy trade between USDA and FDA is the result of years of conversation and efforts between stakeholders within the U.S. dairy industry and the U.S. government to establish consistent guidance on tackling the rising number of export challenges facing our industry. This MOU will help our industry continue to grow in an increasingly competitive global environment,” said Tom Vilsack, president and CEO of USDEC.

“This new partnership ensures that the staff at USDA and FDA are working together in the most efficient way possible to lower barriers for our farmer’s dairy exports. Increasing U.S. dairy exports will strengthen the health of our farmers and rural communities, which is more important than ever as America’s dairy industry faces new and unprecedented challenges. We appreciate all of the hard work from both agencies and stand ready to support the USDA and FDA’s commitment to open new doors for U.S. dairy exports,” said Jim Mulhern, president and CEO of NMPF.

NMPF’s Castaneda Says U.S. Needs to Be Careful in Mexican Trade Issues

NMPF Senior Vice President for Policy Strategy and International Trade Jaime Castaneda says the U.S. needs to be careful in how it handles concerns about trade with Mexico of seasonal agricultural products, given the ripple effect Mexican trade has across agriculture. Castaneda also discussed the USMCA trade agreement, dairy sales to China and other issues on the “Adams on Agriculture” podcast.

NMPF’s Morris Says USMCA Must Be Protected

NMPF’s vice president for trade, Shawna Morris, talks about the importance of enforcing the dairy provisions of the USMCA trade agreement, including access to Canada’s market and the protection of common cheese names in Mexico, on the Adams on Agriculture podcast.

U.S. Dairy Industry Praises Administration and Congress for Final Passage of USMCA

ARLINGTON, VA – The U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) cheered today’s Senate vote paving the way for the President’s signature of the United States-Mexico-Canada Agreement (USMCA).

Looking ahead, USDEC and NMPF urged U.S. officials to carefully monitor Canada and Mexico’s USMCA commitments once the trade deal takes effect to ensure its provisions are enforced accordingly so that the dairy industry is able to reap the full benefits of the agreement negotiated by Ambassador Lighthizer and the negotiating teams at USTR and USDA.

“USMCA makes important strides to break down trade barriers, opening the door to new opportunities and supporting the flow of high-quality American dairy products to two valuable export markets,” said Tom Vilsack, president and CEO of USDEC. “The strong enforcement measures included in the final agreement give officials the tools necessary to hold our trade partners accountable and ensure the gains secured by USMCA are completely realized. We are grateful to the Administration for the sizable accomplishments secured in USMCA on dairy. With this trade deal complete, negotiators can now turn their attention to other key markets around the world in order to gain further ground for U.S. dairy.”

“America’s dairy farmers are celebrating today’s bipartisan vote as a win. Under President Trump’s leadership, USTR and USDA negotiated an agreement that will deliver a more certain future for our dairy farmers and rural economy,” said Jim Mulhern, president and CEO of NMPF. “The U.S. must now remain diligent and proactively work with Canada and Mexico to implement USMCA in both letter and spirit. Full compliance is essential to achieving more fair trade with Canada and protecting American-made cheeses in Mexico.”

USMCA fundamentally changes Canada’s trade-distorting policies, reforms Canada’s controversial dairy pricing system and provides exclusive Canadian market access for U.S. farmers and manufacturers. According to the International Trade Commission, U.S. dairy exports are projected to increase by more than $314 million a year. USMCA also strengthens the relationship between Mexico and the U.S. and establishes new protections for products that rely on common cheese names, such as parmesan and feta.

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Dairy Defined Podcast: Mooney Speaks at Annual Meeting

 

(Note: NMPF’s Dairy Defined podcast explores today’s dairy farms and industry using high-quality data and podcast-style interviews to explain current dairy issues and dispel myths.)

ARLINGTON, Va. – U.S. dairy farmers have been through challenging times, but they’re ready to face the challenges of trade, the environment, climate and changing consumer tastes, said Randy Mooney, a Missouri dairy farmer and chairman of the National Milk Producers Federation. Mooney spoke this morning at the organization’s annual meeting, this in New Orleans.

“Dairy farmers play an important role in society. We help preserve communities,” he said. “Like all of you, I’m proud to be a dairy farmer, producing the most nutritious product in the world.”

To listen to the full podcast, click here. You can also find the Dairy Defined podcast on Spotify and SoundCloud. Broadcast outlets may use the MP3 file. Please attribute information to NMPF.

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 The National Milk Producers Federation (NMPF), based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce more than two-thirds of U.S. milk, making NMPF dairy’s voice on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

Dairy Farmers Count on Congress to Pass USMCA

The push to complete the U.S.–Mexico–Canada agreement (USMCA) received a boost in June when Mexico became the first country to ratify the trade agreement. Still, Washington has yet to take action, making collaboration key as NMPF works with other stakeholders to get the agreement over the finish line.

The U.S. Trade Representative’s Office is working with leading members of Congress to hash out a way forward, specifically focusing on concerns expressed by Democrats to guarantee sufficient Congressional support. Complementing that work, about 50 dairy farmers and dairy-cooperative staff took NMPF’s message in support of USMCA’s passage directly to Capitol Hill in June. Their on-the-ground advocacy was dovetailed with NMPF’s work to educate policymakers on the importance of this trade agreement to the dairy industry.

Also last month, NMPF joined forces with the U.S. Dairy Export Council and the International Dairy Foods Association to write to members of Congress from top dairy-producing states, asking them to “please pursue a USMCA vote without delay” on behalf of the dairy farms and businesses they represent.

“Solidifying and expanding trade opportunities abroad through USMCA will improve the prospects of dairy farms here at home,” said Jim Mulhern, president and CEO of NMPF. “In the midst of uncertainty surrounding our trade relationships and yet another year of meager milk prices, the United States lost an average of seven dairy farms a day in 2018. The passage of USMCA will instill a renewed sense of optimism in our dairy farmers.”

USMCA will help bolster the U.S. dairy industry by locking in existing access to our key export market in Mexico while increasing trade opportunities in Canada and establishing new trade rules to discipline Canada’s trade-distorting dairy policies, discourage unscientific barriers to trade and preserve the rights of common cheese name users. U.S. government estimates calculate that USMCA will increase U.S. dairy exports to Mexico and Canada by $277 million once it is fully implemented.