Baldwin, Marshall, Klobuchar, Ernst Call on Trump Administration to Level Playing Field with Canada for American Dairy Farmers

Canada unfairly blocks market access for American dairy while undercutting Wisconsin farmers by keeping prices artificially low

Wisconsin’s dairy industry supports 150,000 jobs and contributes $45.6 billion to the state’s economy

WASHINGTON, D.C. – Today, U.S. Senators Tammy Baldwin (D-WI), Roger Marshall (R-KS), Amy Klobuchar (D-MN), and Joni Ernst (R-IA) are calling on the Trump Administration to help level the playing field for dairy farmers as trade talks continue between Canada and the United States. For years, Canada has skirted international trade agreements, including the United States–Mexico–Canada Agreement (USMCA), by blocking American producers from Canadian markets and exporting Canadian dairy products at artificially low prices, undercutting American dairy products and hurting Wisconsin farmers.

“Historically, Canada has failed to live up to its commitments to provide access to its market; this remains the case even with new provisions in USMCA. In addition, Canada appears to be evading USMCA disciplines designed to deal with excessive protein exporting at artificially low prices,” wrote the Senators in a letter to U.S. Trade Representative Jamieson Greer, Commerce Secretary Howard Lutnick, and Department of Agriculture Secretary Brooke Rollins. “In upcoming negotiations with your Canadian counterparts, particularly those regarding USMCA, we ask that you address these longstanding issues that harm the United States’ ability to export dairy products.”

The United States is a global leader in dairy production and safeguarding access to international markets is critical to protecting dairy farmers and producers. For years, Canada has not been living up to agreements that were meant to level the playing field for American dairy businesses.

Despite commitments made under USMCA, Canada’s dairy sector continues to operate in a way that limits access to its market, putting Wisconsin farmers at a disadvantage. Canada blocks access to their market in part by reserving the majority of their Tariff Rate Quotas (TRQs), or the amount of product that the United States can export with a reduced tariff, for Canadian processors, making it difficult for American processors and retailers to compete. In addition, Canada exports excessive quantities of dairy protein at a below-market price, undercutting American producers competing in the global market.

“The United States is a global leader in dairy production, and Canada is one of the top export markets for American dairy products. Access to international markets is critical to maintain our dairy industry, which supports over 3 million jobs nationally,” the Senators concluded. “We urge you to address this issue with your Canadian counterparts during USMCA discussions and other negotiations regarding trade between our two nations.”

For years, Senator Baldwin has been calling out Canada’s unfair trade practices that hurt Wisconsin dairy farmers and processors. Senator Baldwin has repeatedly pursued trade disputes under USMCA on behalf of Wisconsin dairy farmers, and pushed for the fair enforcement of these rulings to ensure fair market access for American businesses. Senator Baldwin has also criticized USMCA decisions that do not hold Canada accountable for blocking market access. During the first Trump Administration, Senator Baldwin consistently called out trade barriers between the United States and Canada that hurt the American dairy industry.

A full version of this letter is available here and below.

Dear Ambassador Greer, Secretary Lutnick, and Secretary Rollins:

We write to draw your attention to a persistent irritant in the trade relationship between the United States and Canada: the treatment of America’s dairy farmers and processors. Historically, Canada has failed to live up to its commitments to provide access to its market; this remains the case even with new provisions in the United States-Mexico-Canada Agreement (USMCA). In addition, Canada appears to be evading USMCA disciplines designed to deal with excessive protein exporting at artificially low prices. In upcoming negotiations with your Canadian counterparts, particularly those regarding USMCA, we ask that you address these longstanding issues that harm the United States’ ability to export dairy products.

As you may know, Canada’s dairy sector operates under limited production, set prices, and restricted imports through high tariffs to protect their supply management system. These policies purposefully limit access to Canada’s market. While the changes in USMCA were expected to be a limited but welcome improvement, Canada is not fulfilling their commitments under this trade agreement. Canada continues to manipulate access to its dairy market by reserving the vast majority of shares of their Tariff Rate Quotas (TRQs) for Canadian processors, causing fill rates to remain low across several dairy product categories, including whey powder, milk powder, and cheese for industrial use. Meanwhile, other supply chain actors like retailers are entirely excluded from TRQ access while others such as distributors are left with only limited quantities.

Another reform that Canada appears to be skirting are rules put in place to regulate exports of dairy protein. By exploiting a loophole, Canada exports excessive quantities of dairy protein at an artificially low price, negatively impacting global markets the United States relies on. This trade distorting behavior must be addressed to facilitate fair dairy trade around the world and support our domestic industry. The United States is a global leader in dairy production, and Canada is one of the top export markets for American dairy products. Access to international markets is critical to maintain our dairy industry, which supports over 3 million jobs nationally.

We urge you to address this issue with your Canadian counterparts during USMCA discussions and other negotiations regarding trade between our two nations. Thank you for your attention to this important matter.

NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.