NMPF, USDEC Urge U.S. Government to Preempt Columbian Trade Barriers

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Source: National Milk Producers Federation (NMPF)

The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) are asking the U.S. government to prepare a plan to “leverage all available tools” should Colombia move forward with imposing countervailing tariffs on U.S. milk-powder exports, making that request in a letter sent Friday to U.S. Trade Representative Katherine Tai and U.S. Agriculture Secretary Tom Vilsack.

USDEC and NMPF also commended a complementary Congressional letter sent Friday to Colombian Ambassador to the United States Luis Gilberto Murillo in response to the investigation. Led by Reps. Jim Costa, D-CA, Adrian Smith, R-NE, Jimmy Panetta, D-CA and Dusty Johnson, R-SD, the letter highlights that the U.S. and Colombian dairy industries should be working collaboratively to promote policies that strengthen the dairy sector instead of launching “damaging protectionist investigations.”

Colombia’s recent decision to initiate an unwarranted Subsidies and Countervailing Measures investigation into U.S. exports of milk powder  is a tariff threat without merit, USDEC and NMPF say in the letter, noting that no causal link exists between U.S. milk powder exports and the injury alleged by Colombian officials. The letter also explains that imported milk powder products and domestically produced fluid milk are not interchangeable ingredients in a food manufacturing facility.

“The U.S.-Colombia Free Trade Agreement has been a success story for American and Colombian producers and consumers alike,” said Krysta Harden, president and CEO of USDEC. “Initiating unfounded investigations undermines this progress and is a step backward in our trade relationship. We appreciate the Ag Trade Caucus leaders for recognizing this investigation for what it is – baseless. USDEC commends the U.S. interagency team for their extensive work on the ongoing investigation and will continue to work closely with the U.S. government and Congress as the legal process moves forward.”

“NMPF appreciates Representatives Costa, Smith, Panetta and Johnson for standing up for American dairy producers’ market access rights,” said Gregg Doud, president and CEO of NMPF. “We will continue working with the U.S. government to ensure this unsubstantiated investigation doesn’t set a dangerous precedent.”