Dairy Industry Opposes Plan to Open New Front in Tariff War
Luke Waring, USDEC
ARLINGTON, VA - After celebrating the removal of Mexico's retaliatory tariffs earlier this month and the momentum that lent to support passage of the U.S.-Mexico-Canada Agreement, the U.S. Dairy Export Council expressed serious concern about the White House's announcement yesterday to impose new duties on all imports from Mexico beginning June 10.
"Mexico is a trusted trade partner and ally and the dairy industry was looking forward to the resumption of a robust trade relationship with Mexico," said Tom Vilsack, president and CEO of the U.S. Dairy Export Council (USDEC). "As Senator Grassley has indicated, this action may threaten forward movement on the USMCA ratification effort, which is a top priority for the dairy industry and the Trump Administration."
The United States shipped $1.4 billion in dairy products to Mexico last year, accounting for 73 percent of Mexico's dairy imports and more than one-quarter of U.S. dairy exports. USMCA, or the U.S.-Mexico-Canada Agreement, modernizes the North American Free Trade Agreement, maintains U.S. dairy sales into Mexico, expands dairy market access in Canada, and reforms many nontariff barriers. According to U.S. government estimates, dairy sales to Mexico and Canada should grow by $277 million once USMCA is fully implemented.
The U.S. Dairy Export Council is a non-profit, independent membership organization that represents the global trade interests of U.S. dairy producers, proprietary processors and cooperatives, ingredient suppliers and export traders. Its mission is to enhance U.S. global competitiveness and assist the U.S. industry to increase its global dairy ingredient sales and exports of U.S. dairy products. USDEC accomplishes this through programs in market development that build global demand for U.S. dairy products, resolve market access barriers and advance industry trade policy goals. USDEC is supported by staff across the United States and overseas in Mexico, South America, Asia, Middle East and Europe. The U.S. Dairy Export Council prohibits discrimination on the basis of age, disability, national origin, race, color, religion, creed, gender, sexual orientation, political beliefs, marital status, military status, and arrest or conviction record. www.usdec.org.