During a Senate Agriculture Committee hearing Tuesday with Agriculture Secretary Sonny Perdue, several committee members expressed concern with Canada’s Class 7 milk pricing regime and its harmful effects on the U.S. dairy industry. Ranking Member Debbie Stabenow, D-Mich., stressed the need for U.S. companies to have a level playing field with Canada and asked if Perdue would advocate for the resolution of dairy issues in the North American Free Trade Agreement (NAFTA) negotiations.

Perdue said he had been a principal participant in administration trade talks on a weekly basis since last fall, and he would continue to advocate for dairy to be included in NAFTA negotiations.

Sens. Amy Klobuchar, D- Minn., Kirstin Gillibrand, D- N.Y., and Heidi Heitkamp. D-N.D., also called attention to Canada’s protectionist policies during the hearing that focused on the state of rural America. They said these policies were undercutting U.S. dairy exports.

Canada’s Class 7 dairy provisions, which were established 14 months ago, severely restrict market access for U.S. dairy products and allow Canada to dump skim milk powder on the world market.

Perdue said, “I’m optimistic we will get a NAFTA discussion, but I don’t know how optimistic I am regarding the dairy conclusion to our liking.” He also said he would continue to mention dairy in his conversations with U.S. Trade Representative Robert Lighthizer and the USTR Chief Agriculture Negotiator Gregg Doud.

“IDFA has consistently raised awareness on Capitol Hill of the problems caused by Canada’s pricing system,” said Donald Grady, IDFA manager of legislative affairs, who attended the hearing. “We’re pleased to hear Sens. Stabenow, Klobuchar, Heitkamp and Gillibrand raise the issue in the hearing, and we appreciate Secretary Perdue’s willingness to continue advocating for dairy and raising the importance of addressing dairy in the NAFTA negotiations.”

The senators’ comments at the hearing follow recent calls from other members of Congress for the administration to address Class 7 pricing in NAFTA negotiations.

Read, “Rep. Rouzer Raises Canadian Pricing Provisions with President Trump,” and “Senators Call for NAFTA to Address Unfair Canadian Dairy Policies.”

For more information, contact Grady at dgrady@idfa.org.