making a difference for dairy

Canadian Trade Policies
Food Waste
Geographical Indications
National Bioengineered Food Disclosure Standard
NCIMS - 2017 Conference Summary
North American Free Trade Agreement (NAFTA)
Nutrition Facts Label Changes
Trade Promotion Authority (TPA)
Worker Safety in the Dairy Industry

More issues...

Be Heard

Regulatory RoundUp

Get Involved

Dairy Counts

Join the Discussion

Dairy Forum

Dairy Delivers: The Economic Impact of Dairy Products
Dairy Counts
FDA Milk Safety Memorandums
Buyers' Guide
Member Hotlines
Dairy Market Prices
Quick Links

Dairy Facts 2016

Brazil's Plans for Retaliatory Tariffs Include U.S. Dairy Products

Mar 12, 2010

Trade tensions increased between Brazil and the United States on Monday when the Brazilian government unveiled plans to retaliate against U.S. cotton subsidies by increasing tariffs on select U.S. imports, including dairy. The plan, which will likely take effect within a month unless the governments reach an agreement, strategically targets more than 50 U.S. products, including milk powder with less than 1.5 percent fat, whey powder and protein concentrates.

Without a compromise, tariffs for milk and whey powder would raise to 48 percent, a 45-percent increase over current levels. Tariffs for protein concentrates would increase to 34 percent, marking a 41-percent increase.

IDFA and other industry groups have formed the Brazil Trade Action Coalition in an effort to encourage U.S. officials to solve the dispute without harming third-party industries. The coalition has sent letters to Congressional leadership asking for a swift compromise.

The dispute began in 2002, when Brazil initiated a World Trade Organization case against provisions in the U.S. cotton program. The United States made changes to comply with the WTO findings, but Brazil continued to challenge U.S. actions. Last August, the WTO authorized Brazil to suspend trade concessions for the United States or impose trade sanctions equivalent to the damage caused by cotton subsidies. Brazil threatened in November to retaliate with excessive tariffs, but waited until this week to set an implementation deadline.

Dairy exports to Brazil have grown exponentially since 2004, reaching more than $24 million in 2008. The proposed retaliatory tariffs would affect more than $5 million worth of U.S. milk proteins exported to Brazil, according to U.S. Department of Agriculture figures for 2009.

For more information, contact Katie Sparrow, IDFA manager of international affairs, at or (202) 220-3507.



International Sweetener Colloquium