California Ag Network

Tag: USDEC

  • U.S. Dairy Welcomes Argentina Trade Agreement

    The National Milk Producers Federation (NMPF), U.S. Dairy Export Council (USDEC) and Consortium for Common Food Names (CCFN) celebrated the signing of a U.S.–Argentina Agreement on Reciprocal Trade and Investment that includes tariff and nontariff barrier concessions for U.S. dairy exports.

    Argentina commits in the trade deal to eliminate tariffs that currently range up to 28 percent on select dairy products, including milk powders, dairy proteins, lactose, and other dairy ingredients. The agreement also establishes a 1,000 metric ton quota for certain U.S. cheeses. In addition to tariff reductions, Argentina agrees to prevent several nontariff barriers, including refraining from imposing processing facility registration requirements on U.S. dairy exports and providing explicit protections for 39 common cheese names like “parmesan”.

    “The commitments secured in the U.S.-Argentina reciprocal trade deal bring new, real opportunities for our dairy exports to South America,” said Krysta Harden, president and CEO of USDEC. “USDEC appreciates USTR’s hard work in securing agreements that lower tariffs and meaningfully address nontariff barriers, particularly those to protect common cheese names. We look forward to building our market presence in Argentina as the agreement is implemented.”

    “Trade deals like this one bring dairy farmers promise for the future,” said Gregg Doud, president and CEO of NMPF. “Dairy farms operate 365 days a year, and the U.S. negotiating team is keeping pace to secure new market access. NMPF will continue to work with the Administration as all the reciprocal trade agreements are translated into real results on the ground for our farmers.”

    “Argentina’s commitment to protect 39 common cheese names and 10 generic meat terms could not have come at a more important time,” said Jaime Castaneda, executive director of CCFN. “As the European Union is advancing toward implementation of its trade agreement with the Mercosur bloc of countries, our ability to use common names is increasingly at risk. We cannot thank Ambassador Greer and the USTR negotiating team enough for the foresight and leadership in protecting U.S. exporters’ rights.”

    The trade deal follows reciprocal trade agreements that the United States signedr ecently with El Salvador and Guatemala last week that included commitments to prevent barriers to U.S. dairy exports. USDEC and NMPF will continue to work with the U.S. government as the reciprocal trade negotiations progress to identify and address impediments to dairy trade and grow U.S. export opportunities.

    —By the National Milk Producers Federation

  • U.S. Dairy Testifies on State of Maritime Supply Chain

    Tony Rice, Senior Director of Trade Policy at the National Milk Producers Federation and U.S. Dairy Export Council, testified before the House Judiciary Subcommittee on the Administrative State, Regulatory Reform and Antitrust on the maritime supply chain challenges faced by the U.S. dairy industry.

    The U.S. dairy industry exported $9.6 billion and three million metric tons of cheeses, milk powders, whey proteins, and other dairy products last year, making reliable transportation vital to its economic wellbeing. Yet American dairy exporters have little choice but to rely on a small number of ocean carrier options, almost all of which are foreign owned.

    “Dairy farmers milk their cows 365 days a year,” Rice said. “When export shipments are delayed, cancelled, or become more expensive to move, the disruptions ripple back through the supply chain and ultimately affect farm income.”

    Rice drew on lessons from the pandemic-induced supply chain crisis, when severe delays, routinely cancelled bookings and unprecedented port congestion disrupted cargo movements and cost U.S. dairy producers billions in unexpected costs and lost sales opportunities. While the Ocean Shipping Reform Act of 2022 addressed several issues related to unfair fees, Rice highlighted that dairy exporters in the U.S. continue to face operational uncertainty when bookings are rejected, port calls are skipped or receiving windows shift without explanation.

    To address these challenges, the U.S. dairy industry called for greater investment in the domestic maritime sector to expand American shipbuilding capacity, robust Federal Maritime Commission oversight of the global maritime carrier marketplace and increased transparency from ocean carriers on booking decisions.

    “We recognize the importance of efficient global shipping networks,” Rice said. “Our concern is ensuring that those networks work for American dairy exporters as well as they work for global carriers.”

    The National Milk Producers Federation, based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce more than two-thirds of U.S. milk, making NMPF dairy’s voice on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

    The U.S. Dairy Export Council is a non-profit, independent membership organization that represents the global trade interests of U.S. dairy producers, proprietary processors and cooperatives, ingredient suppliers and export traders. Its mission is to enhance U.S. global competitiveness and assist the U.S. industry to increase its global dairy ingredient sales and exports of U.S. dairy products. For more, visit www.usdec.org.

  • U.S. Retaliatory Tariffs Required as Canada Refuses USMCA Obligations

    The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) today called on the U.S. government to levy retaliatory tariffs on Canada after Ottawa made clear that it refuses to meet its signed treaty obligations under the U.S.-Mexico-Canada Agreement (USMCA) concerning dairy market access.

    In January, a USMCA dispute resolution panel initiated by the U.S. found that Canada’s dairy tariff-rate quotas (TRQs) system violates the terms of USMCA. Canada issued a new TRQ proposal in March which included only inconsequential changes. Today’s announcement shows no indication that Canada intends to comply with its USMCA commitments on dairy TRQs.

    “Canada made a clear choice to thumb its nose at both the United States government and its international treaty obligations. It has completely disregarded the USMCA agreement signed just a few short years ago,” said Jim Mulhern, president and CEO of NMPF. “Ottawa’s decision today is clearly designed to test our resolve by doubling down on its longstanding dairy trade violations, ignoring both the spirit and the letter of its trade agreements. That decision demands retaliatory action by the U.S. government. Otherwise, our trade agreements will be seen as toothless before the ink is dry.”

    “USTR, USDA and scores of members of Congress from both side of the aisle have worked diligently to ensure American dairy farmers and manufacturers benefit from USMCA. They deserve our deepest thanks for bringing us this far,” said Krysta Harden, president and CEO of USDEC. “Unfortunately, Canada simply refuses to institute real reform, and such actions must have consequences. Retaliatory tariffs are both fair and necessary in this circumstance, as clearly provided for by USMCA.”

    As an April 5 bipartisan letter on the matter sent to Ambassador Tai and Secretary Vilsack from several leading members of the U.S. House of Representatives stated, “A deal’s a deal; it’s not too much to ask that our trading partners live up to their end of the bargain.”

    On April 19, USDEC and NMPF filed public comments on the matter with Global Affairs Canada. The filing noted, “Canada’s proposed allocation and administration policy changes in response to the CUSMA report continue to fall woefully short of full compliance with Canada’s CUSMA obligations. This has consequences not only for the agreed-upon CUSMA benefits denied U.S. and Canadian stakeholders, but also for the credibility of CUSMA enforcement procedures undergoing their first test in this dispute and for the success of CUSMA itself. We urge Canada to consider its larger interest in the success of the CUSMA and modify its dairy TRQ allocation and administration policies to give effect, in good faith, to Canada’s CUSMA commitments.”

    The International Dairy Foods Association (IDFA) also shared their distaste with Canada’s actions. “This outcome is completely unacceptable,” said Michael Dykes, D.V.M., president and CEO of IDFA. “Canada’s publication today clearly shows they are ignoring their trade commitments agreed to in the USMCA and refusing to administer their dairy TRQs in a manner compliant with the agreement. The U.S. dairy industry has made clear from the start that U.S. dairy exporters demand real TRQ reform that will permit the market access Canada agreed to. The U.S. met with Canada a week ago on this very matter and expected a good faith effort. Instead, Canada continues to deny U.S. dairy products from reaching their full capacity under the terms of the deal and continues to deny the existence of any obligations. IDFA thoroughly rejects the Canadian policy published today and demands a swift response from USTR.”

    He continued, “Canada cannot be permitted to blatantly disregard their trade obligations after having been found non-compliant by a neutral and expert panel, only to then ignore their obligations without consequence. We are pleased to see USDA responding forcefully and hope that USTR does the same. Our government must hold Canada accountable.”

  • Congress Demands Canada Meet its USMCA Dairy Commitments, Earning Dairy’s Praise

    The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) expressed their deep appreciation for robust Congressional support on ensuring Canada fully honors its U.S.-Mexico-Canada (USMCA) dairy market access commitments. Recently, several leading members of the U.S. House of Representatives sent a bipartisan letter to U.S. Trade Representative Katherine Tai and U.S. Secretary of Agriculture Tom Vilsack calling on the administration to reject Canada’s recent dairy proposals and insist on real reform.

    Last month, Canada proposed inconsequential changes to its dairy tariff-rate quota (TRQ) allocations after a USMCA dispute panel found in January that Canada’s existing rules do not meet USMCA requirements. Led by Reps. Ron Kind (D-WI), Tom Reed (R-NY), Antonio Delgado (D-NY), Glenn Thompson (R-PA), Suzan DelBene (D-WA), Dusty Johnson (R-SD), Jim Costa (D-CA), and David Valadao (R-CA), the letter argues that Canada must bring its dairy TRQs into alignment with its USMCA commitments, which would further open Canada’s market to U.S. dairy products. Representative Elise Stefanik (R-NY) has sent a similar letter pointing out that Canada’s USMCA dairy TRQ proposal is insufficient to deliver on USMCA’s promise for dairy exporters on March 4.

    “The USMCA is not a list of optional suggestions and aspirational ambitions. Yet Canada has treated its obligations to American dairy producers as a game, seeing what they can get away with,” said Jim Mulhern, president and CEO of NMPF. “Congress rightfully recognizes this must stop. If we do not require our allies meet their signed commitments, then our trade agreements are not worth the paper they are printed on.”

    “USDEC appreciates this strong bipartisan support focused on ensuring that American dairy exporters receive the benefits that was negotiated in the USMCA,” said Krysta Harden, president and CEO of USDEC. “We are committed to continuing to work with the U.S. government to make sure that the dairy market access negotiated with Canada is provided in full to the benefit of both American dairy farmers and manufacturers, and Canadian consumers alike.”

    The bipartisan House letter sent today states, “A deal’s a deal; it’s not too much to ask that our trading partners live up to their end of the bargain. That is why it is critical that this compliance stage of the USMCA dairy case demonstrate that the USMCA enforcement process works – not just to deliver the right finding, as it did in January – but to ensure faithful implementation of the overall agreement and drive real, tangible reforms that are seen on store shelves, to the benefit of American dairy producers and manufacturers, just as USMCA intended.”

    The National Milk Producers Federation, based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce more than two-thirds of U.S. milk, making NMPF dairy’s voice on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

    The U.S. Dairy Export Council (USDEC) is a non-profit, independent membership organization that represents the global trade interests of U.S. dairy producers, proprietary processors and cooperatives, ingredient suppliers and export traders. Its mission is to enhance U.S. global competitiveness and assist the U.S. industry to increase its global dairy ingredient sales and exports of U.S. dairy products.

  • What’s Important to Know About Dairy on Earth Day

    Spring has arrived, the weather is warming (though not too much, we hope), and Earth Day is April 22. Dairy always has reasons to celebrate Earth Day (or Week, or Month — we have enough reasons to carry the season), an opportunity to refocus on its environmental and climate leadership within agriculture in the U.S. and worldwide. Here are a few of them, courtesy of our colleagues at Undeniably Dairy.

    • Due to innovative farming and feed practices, a gallon of milk in 2017 required 30% less water, 21% less land and 19% smaller carbon footprint than in 2007.
    • According to the UN Food and Agriculture Organization, since 2005 North America was the only region in the world that reduced its greenhouse gas emissions, even as it increased milk production, making its greenhouse gas intensity for dairy products the lowest in the world.
    • Dairy farms are a powerful tools against food waste by diverting byproducts (such as almond hulls, citrus pulp, and brewer’s grains) from other food industries and using them as feed, converting potentially unused resources into high-nutrient foods and beverages. Dairy farmers can also convert food waste and manure into valuable products such as renewable energy and fertilizer.
    • U.S. dairy has set a goal to achieve greenhouse gas neutrality by 2050, creating a cross-industry Net Zero Initiative that advances research, on-farm pilots and new market development to make sustainability practices more accessible and affordable to farms of all sizes and regions.

    All these facts are important to know. But maybe you want to dig deeper. Maybe you need some uplifting reading … or some social media content to share … to help you become an influencer. If that’s the case, could we suggest these helpful links, sharing stories about dairy’s stewardship of the planet and the farmers who care for them? These are just a start.

    The list could go on and on – and we intend to keep adding! So grab a glass of milk and be glad you’re consuming the perfect nutritional complement to an important date on the calendar this week. Sustainability solutions are worth celebrating — and not just on Earth Day. It’s what dairy seeks every day.

    The National Milk Producers Federation, based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce more than two-thirds of U.S. milk, making NMPF dairy’s voice on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

  • U.S. Dairy Industry Urges USDA to Re-Issue Container Report & Provide Additional Export Relief

    The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) today sent a letter to the Biden administration recommending specific steps to provide relief and support to dairy farmers and exporters facing supply chain constraints.

    The letter to Agriculture Secretary Tom Vilsack and Transportation Secretary Pete Buttigieg called for interagency collaboration to enhance capacity at ports, incentivize carriers to load export cargo, and improve transparency throughout the supply chain. The lead recommendation called for USDA’s Agriculture Marketing Service (AMS) to restart its Ocean Shipping Container Availability Report (OSCAR).

    “Supply chain challenges have cost U.S. dairy exporters over $1.5 billion last year alone. We thank Secretaries Vilsack and Buttigieg for their advocacy for America’s agriculture exporters in the face of significant supply chain constraints. We are incredibly grateful for the administration’s ongoing efforts and creative solutions, particularly for the development of ‘pop-up’ sites for agricultural exporters to source empty containers,” said Krysta Harden, president and CEO of USDEC. “The additional recommendations submitted today would provide agricultural exporters much needed insight into container availability and provide avenues to incentivize carriers to load outbound shipments to key dairy markets around the world.”

    Shipping containers for U.S. dairy exports continue to be in short supply at coastal ports, and even more scarce at inland locations. These essential links in the global supply chain must be available to American dairy exporters throughout the country in order to ship their products to overseas buyers,” said Jim Mulhern, president and CEO of NMPF. “We thank USDA and DOT for their strong focus on this issue. As congestion continues, so too must the spectrum of tools deployed to address these challenges. Today’s letter highlights the additional steps necessary to take to ensure American dairy farmers are not losing long-term international market share due to these persistent supply chain challenges.”

    The specified programmatic elements to provide supply chain relief include:

      • Restarting USDA AMS’ OSCAR, which would detail the availability of ocean shipping containers at locations throughout the United States.
      • Establishing inland pop-up terminal yards, similar to those in Oakland and Seattle, in Minneapolis, Chicago, Detroit, Salt Lake City and Kansas City. This would enable greater access inland to containers and improve the ability to secure vessel accommodations with short earliest-return-date windows at those locations.
      • Developing the ‘fast lane’ concept to incentivize the flow of agriculture exports into and from ports. This would include trucking lanes at port terminals that are dedicated to the expeditious delivery of perishable agriculture goods to ports.
      • Incentivizing ocean carriers to load more export containers, instead of empty containers, through preferred or prioritized berthing access.
      • Including real-time tracking of containers as part of the Administration’s Freight Logistics Optimization Works initiative.
      • Piloting projects with carriers for ‘dual turns’ of containers, wherein containers delivering imports to an in-land location may be provided directly to an export-focused shipper, rather than being sent back empty to the port. This could be supported through the USDA’s Commodity Credit Corporation resources.

    The National Milk Producers Federation, based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce more than two-thirds of U.S. milk, making NMPF dairy’s voice on Capitol Hill and with government agencies.

    For more, visit www.nmpf.org.The U.S. Dairy Export Council (USDEC) is a non-profit, independent membership organization that represents the global trade interests of U.S. dairy producers, proprietary processors and cooperatives, ingredient suppliers and export traders. Its mission is to enhance U.S. global competitiveness and assist the U.S. industry to increase its global dairy ingredient sales and exports of U.S. dairy products.

  • USDA Outlines New Program with Port of Oakland for Ag Exports

    Agriculture Secretary Tom Vilsack today announced a new program to help address the export side of the supply chain crisis. The initiative was addressed at a webinar of agriculture industry and policy leaders hosted by the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC).

    The USDA program discussed during the webinar was launched in partnership with the Port of Oakland and will set up a new “pop-up” site at the port dedicated to easing the loading of empty containers with agricultural exports. The new site will also have a dedicated gate with the ability to pre-cool refrigerated shipping containers in order to reduce bottlenecks at the main entrance to the port. The new arrangement should be available beginning in March and will include support of $125 per container for movement logistics costs. See the USDA press release here.

    “Congestion in and around U.S. ports is one of a series of export supply chain challenges undercutting U.S. dairy exporters’ ability to reliably meet the needs of overseas customers for high-quality U.S. dairy products,” said Krysta Harden, president and CEO of USDEC. “By creating a process specific to handling U.S. agricultural exports, we expect USDA’s new partnership with the Port of Oakland will help alleviate some of those challenges. We look forward to working with USDA and our members on this new initiative while continuing to pursue additional legislative and administrative solutions to the dairy export supply chain crisis.”

    “The delays and disruptions in export shipping have cost the U.S. dairy industry well over $1.3 billion through just the first three quarters of 2021 – to say nothing of the rest of America’s agricultural sector. Solving this problem simply cannot wait any longer and today’s announcement of the close collaboration between our associations, the Port of Oakland and USDA is one key step in the right direction,” said Jim Mulhern, president and CEO of NMPF. “Today’s webinar brought together leaders in Congress and the Administration whose efforts have been central to the multi-faceted work of addressing agricultural export supply chain challenges. We thank them for their continuing work and their participation today and look forward to pursuing additional steps to deliver relief for dairy exporters.”

    Agri-Pulse, which served as the media partner for the event, reported over 1,200 registrations for the webinar, one of the highest pre-registration figures in the publication’s webinar history.

    Speakers included USDA Secretary Tom Vilsack; John Porcari, the Biden Administration’s Supply Chain Ports Envoy; Rep. John Garamendi (D-CA); Rep. Dusty Johnson (R-SD); Mike Durkin, president and CEO of Leprino Foods; Andrew Hwang, manager of business development and international marketing for the Port of Oakland; and Jon Eisen, director of the Intermodal Motor Carriers Conference for the American Trucking Association, as well as moderators Krysta Harden of USDEC and Jaime Castaneda of NMPF and USDEC.

    The USDA announcement came just days after Secretary Vilsack hosted a virtual roundtable with leading agricultural industry CEOs on Jan. 27 in which NMPF and USDEC members, among others, raised their concerns tied to exports.

    USDEC and NMPF, in collaboration with other agriculture interests across the U.S., have leveraged a multi-prong approach with Congress and the administration since early 2021 to address the supply chain disruptions plaguing the dairy industry, including unprecedented fees, container availability, and lack of transparency.

    For example, in addition to last week’s meeting at USDA, NMPF and USDEC supported a bipartisan letter led by U.S. Reps. Jim Costa (D-CA) and Dusty Johnson (R-SD) and signed by 71 members of Congress to the White House urging the administration to use its emergency powers to immediately address problems caused by the crisis and mitigate risks to U.S. agricultural exporters. The letter made three specific requests:

    • Utilize available emergency authorities to incentivize carriers to load full outbound containers instead of empties.
    • Utilize emergency actions that allow gross vehicle weight limits to exceed 80,000 lbs., even if only on a temporary basis.
    • Utilize existing tools and authorities to provide immediate access to critical shipping and logistics equipment.

    The National Milk Producers Federation, based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce more than two-thirds of U.S. milk, making NMPF dairy’s voice on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

  • CA Dairy Producer Urges US to Emphasize Trade in Congressional Hearing

    National Milk Producers Federation (NMPF) First Vice Chairman and U.S. Dairy Export Council (USDEC) board member Simon Vander Woude encouraged the U.S. government to prioritize expanded market access opportunities for U.S. dairy exports at a House Subcommittee for Livestock and Foreign Agriculture hearing today focused on trade policies and priorities.

    Vander Woude and his wife, Christine, operate a 3,200-head dairy in Merced, CA. He also serves as Chairman of the Board of Directors of California Dairies, Inc. (CDI), the largest dairy farmer-owned cooperative in California and the second largest in the United States. With sixty percent of the cooperative’s milk powder sold to foreign markets, CDI’s 360 family-owned dairy farms strongly rely on U.S. trade policy tools to keep export markets for their products open and growing.

    “I thank Chairman Costa and Ranking Member Johnson for the opportunity to testify today about U.S. trade policies and priorities impacting the U.S dairy industry. Despite all the growth and success the dairy industry has enjoyed on the export front over the past two decades, we could be doing even better with a level playing field,” said Vander Woude. “While trade is all too often disparaged in this country and its benefits sold short, our competitors are busy forging new agreements. We farmers need a proactive trade policy to keep pace and continue to increase sales to support the good farm and manufacturing jobs our industry creates.”

    Vander Woude stressed in his testimony the urgency of expanding access to key dairy markets like the UK, Asia (Japan, Southeast Asia, China) and the Middle East to catch up with dairy competitors whose countries have aggressively sought trade agreements over the past decade. Vander Woude also highlighted other policy priorities significantly impacting U.S. dairy operations, including the current supply chain crisis, securing long-term relief from Chinese retaliatory tariffs, and implementation and enforcement of existing trade agreements, including USMCA.

    “As Simon outlined so well to the House Livestock and Foreign Agriculture subcommittee today, exports are essential to the health of dairy farmers and to our wider industry,” said Jim Mulhern, NMPF president and CEO. “New access into markets like Canada and Japan last year was a welcome first step, but still far less than what our farmers need to remain competitive globally. The United States needs to begin moving forward again with trade agreements and other policies that expand foreign market opportunities to help family dairy farms thrive and support the thousands of jobs that depend on dairy across this country.”

    “Sound trade policy that opens doors for American-made products takes time to negotiate and the time is ripe for laying that foundation,” said Krysta Harden, USDEC president and CEO. “With the administration and Congress having charted progress on many domestic priorities, now is the time for the U.S. government to take a proactive approach to tearing down both tariff and nontariff trade barriers. We also need forward-looking solutions to the nation’s supply chain issues that are hindering U.S. exports, particularly in markets where America’s farmers are at a disadvantage to our competitors.”

    The National Milk Producers Federation, based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce more than two-thirds of U.S. milk, making NMPF dairy’s voice on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

    The U.S. Dairy Export Council (USDEC) is a non-profit, independent membership organization that represents the global trade interests of U.S. dairy producers, proprietary processors and cooperatives, ingredient suppliers and export traders. Its mission is to enhance U.S. global competitiveness and assist the U.S. industry to increase its global dairy ingredient sales and exports of U.S. dairy products.

  • Dairy Associations Urge Additional White House Action on Ports Crisis

    The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) joined several other organizations urging the Biden administration to take additional steps to alleviate the ongoing ports crisis in a letter sent today to the White House from a coalition of 77 agriculture and food associations.

    Since early 2021, dairy and other agriculture exporters have been facing unprecedented challenges in securing shipping container space on ocean vessels while contending with an accumulation of exorbitant detention and demurrage fees. Foreign owned and operated ocean carriers have been driving this crisis by providing unpredictable and unreasonable timelines for exporters to load agricultural goods and by exacerbating pressure on supply chains by opting to return empty containers rather than allowing time for them to be loaded with Asian-bound goods for the vessel’s return journey. As a result, over 70% of containers are leaving West Coast ports empty, an all-time record.

    Delays and an intentional lack of transparency and flexibility from ocean carriers have cost American dairy exporters over $300 million dollars through just the first half of the year, or 12% of total export value. In addition to this added cost, continued delays put at risk critical trading relationships with Asian importers as the U.S. increasingly risks becoming viewed as an unreliable supplier.

    “We thank the Biden administration for the initial actions taken to address the extraordinary challenges dairy exporters are facing when exporting their products,” said Krysta Harden, USDEC president and CEO. “Unfortunately, the shipping crisis only continues to grow as container availability becomes scarcer with the ocean carriers’ increasing refusal to export American-made products. To further its goals of supporting the workers and companies producing Made-In-America products, we are urging the White House to take a more active role in ensuring that foreign carriers are not permitted to dictate U.S. export flows and put our established trading relationships in jeopardy. Right now, imports seem to be enjoying the equivalent of an eight-lane highway while our exports have been relegated to narrow country roads; that’s not right and we know that Congress and the Administration can take steps to create fairer trading practices.”

    “Without question, ocean carriers are abusing a unique situation created by the pandemic and the lack of sufficient regulatory action to enforce reasonable shipping practices,” said Jim Mulhern, NMPF president and CEO. “We recognize that increased import demand has driven higher rates for shipping, but it does not warrant the cancellations, refusal to load U.S. dairy and agriculture products, and unreasonable detention and demurrage practices that ocean carriers have turned into an additional revenue stream. It is imperative that the Administration takes immediate steps to work with Congress and the FMC to limit these unfair practices and ensure our exporters can reach their customers around the world.”

    The National Milk Producers Federation, based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce more than two-thirds of U.S. milk, making NMPF dairy’s voice on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

    The U.S. Dairy Export Council (USDEC) is a non-profit, independent membership organization that represents the global trade interests of U.S. dairy producers, proprietary processors and cooperatives, ingredient suppliers and export traders. Its mission is to enhance U.S. global competitiveness and assist the U.S. industry to increase its global dairy ingredient sales and exports of U.S. dairy products.

  • USTR Report Cites Impediments to U.S. Dairy Exports

    The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) urged the Biden Administration to work to eliminate foreign tariffs on and nontariff impediments to U.S. exports, following the release today by the Office of the U.S. Trade Representative (USTR) of the 2021 National Trade Estimate Report on Foreign Trade Barriers.

    The annual report looks at progress made and challenges remaining on U.S. trade, investment and services in countries around the globe. Compiled from information from USTR, interagency partners and public stakeholders, this year’s report covers 65 countries and regions, including Arab League nations, the European Union (EU), key Asian markets and important Western Hemisphere destinations for U.S. dairy products.

    USDEC and NMPF submitted comments on the major trade obstacles facing the U.S. dairy industry last October, pointing out that tariffs and nontariff barriers in many countries remain significant roadblocks to American dairy exports. Several of those concerns were incorporated in USTR’s report including dairy trade issues in Mexico, Canada, China and the EU, among others. In addition, USTR highlighted in its release that the key agricultural trade barriers captured in the NTE included “restrictions on the ability of U.S. producers to use the common names of the products that they produce and export”.

    “Exports are extremely important to the U.S. dairy industry, which shipped more than $6.5 billion of product to destinations worldwide in 2020,” said Krysta Harden, President and CEO of USDEC. “Obstacles to those exports negatively affect the economic well-being of America’s dairy farmers and jeopardize dairy processing jobs and workers throughout the supply chain who support our industry. These barriers must be removed.”

    “We need USTR to continue pressing our trading partners to eliminate tariffs and nontariff barriers that restrict our dairy exports,” added Jim Mulhern, President and CEO of NMPF. “The best way to do that is by implementing new Free Trade Agreements and enforcing existing agreements.”

    USDEC and NMPF in their comments focused on barriers in key dairy export markets such as Canada, China, the EU and Mexico. Among the bigger obstacles cited by the organizations were the misuse of geographical indications (GIs) and unscientific import requirements and mandates.

    On GIs, for example, the EU has sought to effectively monopolize common cheese terms by attempting to prohibit American cheese makers from using names such as asiago, feta, gorgonzola, gruyere and parmesan and keep out imports of U.S.-made cheeses with those names, not only in EU nations, but in other countries as well.

    The EU also is a leading offender in employing prescriptive requirements to limit imports, including dairy products, imposing, for example, specific animal disease oversight and documentation procedures and limiting the use of veterinary drugs and commonly used antimicrobials. These are the kinds of barriers USDEC and NMPF urge USTR to remove to ensure exports of U.S. dairy products are available to consumers around the world and to protect the millions of American jobs supported by the U.S. dairy industry.