California Ag Network

Tag: dairy trade

  • IDFA Supports USMCA Review

    The International Dairy Foods Association (IDFA) was in Mexico City to support ongoing review of the United States-Mexico-Canada Agreement (USMCA). Becky Rasdall Vargas, IDFA’s senior vice president of trade and workforce, is engaging with U.S. government officials and industry stakeholders to advance IDFA’s priorities: preserve USMCA and strengthen it for dairy.

    “USMCA is essential to the competitiveness of the U.S. dairy industry and to the strength of North America’s agricultural economy,” said President and CEO Michael Dykes. “As the review process moves forward, we support U.S. negotiators efforts to resolve outstanding dairy commitments and preserve this agreement that is so vital to the economic growth, investment and long-term certainty for U.S. dairy processors and consumers across the region.”

    Mexico is the largest export destination for U.S. dairy products, buying $2.57b of U.S. dairy exports in 2025. As part of the review process, IDFA has consistently advocated for addressing current USMCA commitments that have not been implemented. IDFA has advocated preserving the agreement for the continued stability and growth of the U.S. dairy sector in North America.

    “The USMCA review presents the best opportunity U.S. dairy has had in six years to take a fresh look at and build on the strong trading relationship we have with Mexico,” said Rasdall Vargas. “While USMCA dairy trade issues commonly focus on Canada, ultimately, every trade relationship has areas to improve upon, and Mexico is no different.  IDFA appreciates Mexico’s constructive engagement in negotiations and looks forward to supporting a positive and speedy conclusion of the USMCA review with Mexico.”

    To learn more about IDFA’s trade policy priorities and advocacy efforts, visit www.idfa.org.

    — Story contributed by the International Dairy Foods Association

  • IDFA Supports USMCA Review

    The International Dairy Foods Association (IDFA) is in Mexico City this week to support ongoing review of the United States-Mexico-Canada Agreement (USMCA). Becky Rasdall Vargas, IDFA’s senior vice president of trade and workforce, is engaging with U.S. government officials and industry stakeholders to advance IDFA’s priorities: preserve USMCA and strengthen it for dairy.

    “USMCA is essential to the competitiveness of the U.S. dairy industry and to the strength of North America’s agricultural economy,” said Michael Dykes, president and CEO of IDFA. “As the review process moves forward, we support U.S. negotiators efforts to resolve outstanding dairy commitments and preserve this agreement that is so vital to the economic growth, investment and long-term certainty for U.S. dairy processors and consumers across the region.”

    Mexico is the largest export destination for U.S. dairy products, buying $2.57b of U.S. dairy exports in 2025. As part of the review process, IDFA has consistently advocated for addressing current USMCA commitments that have not been implemented. IDFA has advocated preserving the agreement for the continued stability and growth of the U.S. dairy sector in North America.

    “The USMCA review presents the best opportunity U.S. dairy has had in six years to take a fresh look at and build on the strong trading relationship we have with Mexico,” said Rasdall Vargas. “While USMCA dairy trade issues commonly focus on Canada, ultimately, every trade relationship has areas to improve upon, and Mexico is no different.  IDFA appreciates Mexico’s constructive engagement in negotiations and looks forward to supporting a positive and speedy conclusion of the USMCA review with Mexico.”

    To learn more about IDFA’s trade policy priorities and advocacy efforts, visit www.idfa.org. — Story contributed by the International Dairy Foods Association

  • Dairy Orgs Issue Statements on Tariffs on Canadian Imports

    White House recently issued three presidential proclamations pursuant to Section 338 of the Tariff Act of 1930 to impose additional 50% tariffs on certain goods from Canada in response to Canada’s discriminatory treatment of American products, including dairy. The International Dairy Foods Association (IDFA), U.S Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) have issued statements regarding the measure.

    “IDFA has consistently called on Canada to fully implement its dairy commitments under the United States-Mexico-Canada Agreement (USMCA) and eliminate policies that deny U.S. dairy exporters the market access that was negotiated,” said IDFA President and CEO Michael Dykes. “Our members seek the fair and transparent access promised under the agreement, including proper administration of dairy tariff-rate quotas and the elimination of policies that distort dairy protein trade.”

    “We appreciate the administration’s commitment to standing up for dairy farmers and manufacturers eager to make full use of the market access commitments Canada made under the U.S.-Mexico-Canada Agreement [USMCA],” USDEC President and CEO Krysta Harden, said. “For far too long, Canada has intentionally misused its tariff rate quota system to impede the full use of USMCA dairy quotas. It’s time for Canada to come to the table and resolve this and other USMCA dairy issues. We look forward to working with the administration to ensure that all the intended dairy benefits of USMCA are fully realized.”

    “Today’s assertive action by the administration makes clear to Canada that their dairy trade practices will no longer be tolerated,” NMPF President and CEO Gregg Doud said. “Canada simply cannot continue to discriminate against U.S. dairy farmers by effectively blocking negotiated access to its market. It is well past time for Canada to negotiate in good faith and tackle the outstanding USMCA dairy implementation issues to help drive a successful conclusion of the USMCA review.”

    — Story contributed by the NMPF, IDFA and USDEC

  • USMCA Review Puts Dairy Back in the Spotlight

    The Trump administration announced July 1 it will not renew USMCA in its current form, triggering the agreement’s annual review process while keeping all existing trade provisions—including dairy tariff-rate quotas and rules of origin—in force. The move does not disrupt current dairy trade but keeps long-standing issues, including Canada’s dairy market access, on the negotiating table.

    One week earlier, while speaking June 24 at the Center for Strategic and International Studies (CSIS) conference, Three Nations, One Table: North American Agriculture Under USMCA, Gregg Doud, President and CEO of the National Milk Producers Federation and former U.S. Chief Agricultural Negotiator under the first Trump administration, described dairy as one of North America’s most integrated industries.

    “I think one of the most fascinating conversations on integration is dairy between the U.S. and Canada. I mean, we have facilities on both sides of the border, very close to each other, and there’s stuff going back and forth all the time, which makes it really complicated to know what the real trade is,” Doud said.

    His observation reveals a challenge ahead. While the U.S. operates under a market-oriented milk pricing system built around Federal Orders that are benchmarks, not guarantees, and Canada relies on administered pricing through fat-based milk production quotas, dairy manufacturing has become increasingly integrated as it straddles the border with investments in the U.S. by Canadian-based companies, including at least one prominent Canadian-farmer-owned-cooperative company operating and expanding state-side.

    As negotiations move forward, policymakers will be weighing not only market ‘access,’ but also where value is created and where it lands in an “integrated” North American supply chain and what else is being integrated in terms of ‘sustainability’ definitions, metrics and data collection. In today’s ag and dairy economy, the question of what crosses the border is much more complicated than it was six years ago. — Story contributed by the American Dairy Coalition