Washington, D.C. — Congresswoman Elise Stefanik, along with her colleagues Congressman Mike Bost (R-IL), Congressman Jim Costa (D-CA), Congresswoman Michelle Fischbach (R-MN), Congresswoman Annie Kuster (D-NH), and Congresswoman Suzan DelBene (D-WA) led a bipartisan letter to Secretary Thomas Vilsack and Ambassador Katherine Tai regarding the recent United States-Mexico-Canada Agreement (USMCA) dairy tariff rate quota (TRQ) dispute settlement ruling. The letter expresses extreme disappointment in the ruling and demands the United States Trade Representative (USTR) and the United States Department of Agriculture (USDA) outline the next steps they plan to take to ensure fair access to Canadian export markets for U.S. dairy products.
The letter states, “Canada’s unwillingness to provide fair market access harms U.S. dairy producers and processors and contradicts our understanding of what was negotiated and agreed to in good faith under the USMCA. Canada’s unfair trade practices were made clear in the United States’ first dairy dispute against Canada in 2021, which determined Canada was not living up to its obligations. The changes that Canada has since made to “comply” with the 2021 ruling have not resulted in increased export opportunities for U.S. dairy producers and processors.”
“I am proud to bring the concerns of Upstate New York and North Country dairy farmers who work tirelessly to produce nutritious milk products to the highest levels of the federal government,” said Congresswoman Elise Stefanik. “Our dairy farmers deserve the market access they were promised under USMCA. I will continue to work to ensure that USMCA is enforced to allow fair market access for our dairy farmers, and continue to push USTR and USDA to hold Canada accountable to their obligations under USMCA.”
“I am deeply disappointed with the recent USMCA ruling on Canada’s dairy trade measures,” said Congressman Mike Bost. “This will make it harder for our dairy products to enter the Canadian market and poses a significant threat to Illinois' economy, as the third-largest U.S. dairy exporter to Canada. I am proud to lead this charge in demanding accountability from Canada and transparency from the Biden Administration to protect our billion-dollar industry. Southern Illinois' 12th Congressional district is home to 25 percent of the state’s dairy cows, and we cannot afford to let this issue sit idly by at the expense of our dairy producers and processors. Fair market access is non-negotiable and it’s vital that Canada lives up to its end of the bargain."
“IDFA is deeply disappointed by the USMCA dispute panel’s failure to defend even the most basic rights outlined in the trade agreement. The future of U.S. dairy trade relies upon fair market access that is enabled by comprehensive, rules-based trade agreements with strong enforcement mechanisms. IDFA is grateful to the many congressional dairy champions working to improve market access with Canada, and we look forward to continuing to work with Congress, the U.S. Trade Representative, and the U.S. Department of Agriculture to hold Canada accountable to its USMCA commitments,” said Michael Dykes, D.V.M., president and CEO of the International Dairy Foods Association.
“We thank Congresswoman Stefanik for leading this important message on the need for holding Canada accountable to their dairy market access obligations,” said Jim Mulhern, president and CEO of National Milk Producers Federation. “Despite the USMCA dispute panel ruling last month that enables Canada to continue restricting U.S. dairy exports, USMCA was designed to facilitate trade and to provide the expanded market access for U.S. dairy products outlined in the agreement. American dairy farmers cannot afford to lose further ground in a growing global competitive landscape due to continued Canadian stonewalling of that access. We appreciate all the work USTR and USDA have done to enforce the USMCA dairy provisions. And we are grateful for Congresswoman Stefanik’s years-long advocacy on behalf of North Country and Upstate New York dairy farmers.”
“The U.S. Dairy Export Council appreciates Congresswoman Stefanik’s work in leading this bipartisan Congressional message to the Administration today that highlights the need for clarity on next steps in securing the Canadian dairy market access that the U.S. worked so hard to negotiate,” said Krysta Harden, president and CEO of USDEC. “We thank USTR and USDA for the work they have done to date in bringing forward two disputes on this issue. In light of the misguided USMCA dispute panel ruling last month, it is more important than ever that the Administration thinks creatively about addressing the outstanding market access and dairy protein export dumping concerns that remain with Canada. Dairy producers and processors in New York and throughout the country appreciate the support from Representative Stefanik in ensuring U.S. trading partners honor their market access commitments.”
- In May 2021, Stefanik sent a letter to Ambassador Tai encouraging USTR to enforce Canada’s dairy commitments under USMCA. In January 2022 following Stefanik’s advocacy, USTR announced the USMCA dispute settlement panel ruled in favor of the United States, stating that Canada was breaching its commitments under USMCA. As a result, Canada proposed changes to their TRQs. However, in March 2022, Stefanik called on USTR to reject Canada’s proposed changes to their dairy TRQs under USMCA, as these changes did not provide American dairy producers with the market access they were promised under USMCA.
- In January 2023, following Stefanik’s advocacy, USTR announced the establishment of a second panel to determine whether Canada has been in violation of its market access obligations under USMCA.
- Last month, Stefanik released a statement following the USMCA dispute panel’s ruling allowing Canadian restrictions on U.S. dairy farmers’ market access to continue despite its obligations under USMCA, calling the decision “unacceptable.”
