U.S. Senator Tina Smith (D-Minn.) has called on the nation’s top trade official to use the current NAFTA trade negotiations with Canada to end unfair Canadian dairypolicies that hurt Minnesota producers. In a letter to the U.S. Trade Representative, Ambassador Robert Lighthizer, Sen. Smith pressed him to make helping U.S. dairy farmers a top priority in the negotiations.
Last year, Ambassador Lighthizer revised his NAFTA negotiating objectives to include putting a stop to Canadian tariffs on U.S. dairy exports and other policies that unfairly tilt the playing field in favor of Canadian producers. In the letter sent yesterday, Sen. Smith called on the ambassador to fulfill these objectives because she’s committed to fighting for Minnesota farmers and producers.
Sen. Smith, a member of the Senate Agriculture Committee, and her staff have been holding meetings across the state to hear from as many Minnesotans as possible ahead of the upcoming Farm Bill, and in these meetings the need to address Canada’s harmful dairy policies is a top concern. Canadian trade policies severely restrict U.S. exports of dairy products to Canada, and recent changes to prop up Canadian dairy producers are driving down worldwide milk powder prices and robbing Minnesota dairy producers of key export opportunities.
“Canada’s prohibitive tariffs on most dairy products and its market distorting supply management system currently present significant challenges to U.S. dairy farmers and dairy producers seeking to sell to Canada,” Sen. Smith wrote in her letter. “In addition, Canada’s recent changes to its supply management system for ultrafiltered milk and milk powder have created challenges for the U.S. dairy industry. Last year, Canada’s policy changes regarding ultrafiltered milk caused a number of Minnesota dairy farms to lose their buyers with barely a month’s notice—threatening the livelihoods of many farmers. Further, recent changes to milk powder pricing in Canada threaten to flood world markets and depress prices, robbing U.S. farmers of critical export markets at a time when farmers are already struggling with high costs and low prices for other milk products.
“I support your negotiating objectives with respect to Canadian dairy markets, and I urge you to do all you can to address the concerns with Canada’s market as part of any revised NAFTA agreement.”
You can read a full copy of her letter to the U.S. Trade Representative here or below.
April 19, 2018
The Honorable Robert Lighthizer
U.S. Trade Representative
600 17th Street NW
Washington, DC 20508
Dear Ambassador Lighthizer:
As you work to complete negotiations on revisions to NAFTA, I urge you to continue
pressing for meaningful action to address Canada’s problematic dairy policies. Canada’s
prohibitive tariffs on most dairy products and its market distorting supply management system
currently present significant challenges to U.S. dairy farmers and dairy producers seeking to sell
to Canada.
In addition, Canada’s recent changes to its supply management system for ultrafiltered
milk and milk powder have created challenges for the U.S. dairy industry. Last year, Canada’s
policy changes regarding ultrafiltered milk caused a number of Minnesota dairy farms to lose
their buyers with barely a month’s notice — threatening the livelihoods of many farmers. Further,
recent changes to milk powder pricing in Canada threaten to flood world markets and depress
prices, robbing U.S. farmers of critical export markets at a time when farmers are already
struggling with high costs and low prices for other milk products.
In November 2017, you revised your NAFTA negotiating objectives by adding new
objectives including to “eliminate remaining Canadian tariffs on imports ofU.S. dairy,” and
“eliminate unjustified measures that unfairly limit access to Canada’s markets and unfairly
decrease market access opportunities in third countries for U.S. dairy products, such as cross
subsidization, price discrimination, and price undercutting.”
I support your negotiating objectives with respect to Canadian dairy markets, and I urge
you to do all you can to address the concerns with Canada’s market as part of any revised
NAFTA agreement.
Thank you for your attention to this critical matter.
Sincerely,
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