meta NY Senator calls for reduction on tariff for dairy exports to Canada :: The Bullvine - The Dairy Information You Want To Know When You Need It

NY Senator calls for reduction on tariff for dairy exports to Canada

Senator Chuck Schumer is making a push to help local dairy farmers.

Senator Schumer says NAFTA negotiations, underway now, can help local dairy farmers. He’s pushing for the reduction of the high tariff on dairy exports to Canada.

The issue was the focus of this event at Anderson Farm in Avon. Other farmers we talked to said lower tariffs would have benefits beyond their barns.

Farmer Ron McCormick says, “People don’t realize for every cow that’s out there, there are five people employed by the dairy and agriculture business. People don’t think of a milk truck driver as agriculture, or selling gasoline.”

Senator Schumer sent a letter to the U.S. trade representative in the NAFTA negotiations about Canada’s dairy tariff.

A Copy Of Schumer’s letter appears below:

Ambassador Robert Lighthizer
United States Trade Representative

Dear Ambassador Lighthizer:

As the North American Free Trade Agreement (NAFTA) renegotiations come towards a conclusion, I would like to again emphasize the importance of securing meaningful concessions from Canada to provide stable market access for our dairy producers.  Securing meaningful and enforceable commitments that will allow U.S. dairy producers to compete with Canada’s on a level playing field should be a top priority in NAFTA renegotiations. As I have expressed to you many times, I strongly believe that we should not miss this opportunity to protect our dairy producers from Canada’s recent predatory trade practices.

As you know, Canada’s Class 7 pricing program, a market-distorting supply management system, has caused severe pain to New York dairy producers since it came into force last year. Canada has also maintained large tariffs on dairy products, including a 270 percent tariff on milk. New York’s dairy farmers and companies like Cayuga Milk Ingredients, O-AT-KA Milk, and Ideal Dairy Farm, rely on market-based trade with Canada for a significant percentage – millions of dollars – of their revenue. Not only are New York’s producers locked out of Canada’s ultrafiltered milk market, but in just a year’s time, Canada has used its Class 7 program to triple its milk powder exports, dumping powdered milk products into global markets and undercutting New York dairy producer’s exports. This Class 7 system is likely a violation of Canada’s World Trade Organization (WTO) commitments, but addressing it quickly through NAFTA renegotiation is needed, rather than waiting for years for a WTO determination. This Class 7 system should be dismantled through new NAFTA commitments.

In our discussions, you have committed to me that you would prioritize addressing this issue through NAFTA renegotiations. The President has also privately expressed to me his explicit desire to address this issue and has publically emphasized, many times, the unfair way that Canada has treated our dairy producers, noting just last month: “Canada must treat our farmers much better. Highly restrictive.”

Our hard working dairy producers are the most competitive in the world, but they depend on stable and fair rules to compete in a global economy. Again, I urge you to make meaningful and enforceable commitments that level the playing field for our dairy producers a top priority as NAFTA renegotiations conclude.

Thank you for your attention to this issue.


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