U.S. Sen. Tammy Baldwin and three Senate colleagues are asking the Trump administration to level the playing field for dairy farmers as trade talks continue between Canada and the U.S.
Baldwin, Roger Marshall (R-KS), Amy Klobuchar (D-MN), and Joni Ernst (R-IA) say for years, Canada has skirted international trade agreements, including the United States–Mexico–Canada Agreement, by blocking American producers from Canadian markets and exporting Canadian dairy products at artificially low prices, undercutting American dairy products.
“Historically, Canada has failed to live up to its commitments to provide access to its market; this remains the case even with new provisions in USMCA. In addition, Canada appears to be evading USMCA disciplines designed to deal with excessive protein exporting at artificially low prices,” wrote the Senators in a letter to U.S. Trade Representative Jamieson Greer, Commerce Secretary Howard Lutnick, and Department of Agriculture Secretary Brook Rollins. “In upcoming negotiations with your Canadian counterparts, particularly those regarding USMCA, we ask that you address these longstanding issues that harm the United States’ ability to export dairy products.”
The U.S. is a global leader in dairy production and safeguarding access to international markets is critical to protecting dairy farmers and producers. For years, Canada has not been living up to agreements that were meant to level the playing field for American dairy businesses.
Despite commitments made under USMCA, Canada’s dairy sector continues to operate in a way that limits access to its market, putting Wisconsin farmers at a disadvantage. Canada blocks access to their market in part by reserving the majority of their Tariff Rate Quotas, or the amount of product that the United States can export with a reduced tariff, for Canadian processors, making it difficult for American processors and retailers to compete. In addition, Canada exports excessive quantities of dairy protein at a below-market price, undercutting American producers competing in the global market.
“Access to international markets is critical to maintain our dairy industry, which supports over 3 million jobs nationally,” the Senators concluded. “We urge you to address this issue with your Canadian counterparts during USMCA discussions and other negotiations regarding trade between our two nations.”
