U.S. dairy producers are not satisfied with the Canada-United States-Mexico Agreement and they want to take another look at it, says National Milk Producers Federation president and CEO Gregg Doud.
That was Doud’s message for RealAgriculture’s Shaun Haney at the Top Producer Summit in Kansas City mid-February when they discussed dairy trade between the two countries and the future of the USMCA. Doud says Canada needs to live up to its commitments, especially regarding tariff rate quotas (TRQs) for butter and skim milk proteins. He highlights the U.S. dairy industry’s dissatisfaction with the current TRQ administration and the need for renegotiation.
Haney notes that in 2023, a USMCA dispute panel ruled in favour of Canada, stating that Canada is not obligated to make further changes, following an earlier ruling in December 2021 that Canada’s handling of TRQs was “inconsistent” with the trade deal. Doud called that ruling a “split decision” and emphasized the need for a fresh look at the dairy market between the US and Canada, considering new developments and market conditions.
Doud says dairy producers will be asking the U.S. government, including U.S. Secretary of Agriculture Brooke Rollins and the United States Trade Representative, to negotiate a fair and appropriate way forward on the dairy trade issues between the two countries.
Haney and Doud also discuss international dairy markets, including softening Chinese demand, the impact of New Zealand imports and U.S. hopes to tap into the markets in Central America.
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