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Canadian Trade Policies

Dairy Groups Around the Globe Challenge Canada’s New Protectionist Dairy Policy

Dairy organizations and policymakers in the United States, Australia, the European Union, Mexico and New Zealand have repeatedly expressed indignation about Canada’s actions to deepen its already prohibitive restrictions on dairy trade. Canada’s increasingly protectionist policies violate international trade obligations, hold out the prospect of trade diversion with attendant global price-depressing impacts and conflict with the principles of free markets and fair and transparent trade.

In the United States, IDFA joined the National Milk Producers Federation, the U.S. Dairy Export Council and the National Association of State Departments of Agriculture in opposing the recently implemented Canadian National Ingredient Strategy, which provides monetary incentives to Canadian processers to encourage them to use Canadian dairy inputs and discourage use of imported U.S. ultra-filtered milk. The impact of this strategy applied in just one province, Ontario, is conservatively estimated at $150 million worth of ultra-filtered milk exports being lost by companies in Wisconsin and New York. The national strategy will have much more harmful effects beyond ultra-filtered milk and into WTO-violating skim milk powder subsidies.

“IDFA is speaking out against Canada’s protectionist policies on Capitol Hill, and asking the Trump Administration and state governors and legislators to insist that Canada honor its trade commitments and allow more market access for U.S. dairy products,” said Michael Dykes, D.V.M., president and CEO of IDFA.

The new pricing policy by Canada has already left Wisconsin and New York farmers and processors without a market, and will have ripple effects across the industry. If not alleviated, the policy will continue to harm U.S. farmers, processors and taxpayers as well as Canadian consumers.

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