IDFA Challenges Canada's Compliance with USMCA Dairy Policies
The International Dairy Foods Association (IDFA) has submitted comments to the U.S. Trade Representative (USTR) regarding Canada's alleged violations of the United States-Mexico-Canada Agreement (USMCA) in the dairy sector. The IDFA highlighted the importance of the agreement to the U.S. dairy industry, which reportedly exported $3.6 billion worth of products to Mexico and Canada in 2024, representing 44% of total U.S. dairy exports.
The IDFA reproached Canada for undermining dairy market access commitments by altering milk price classes before the USMCA's implementation, which they claim circumvents transparency requirements. They also criticized Canada's tariff-rate quota (TRQ) policies as being non-transparent and favoring domestic processors.
Furthermore, the IDFA raised issues with Mexico's Milk Self-Sufficiency Plan, which aims to increase domestic milk production by 25% by 2030. The IDFA argued that this plan could threaten U.S. dairy exports to Mexico, which make up 30% of Mexico's dairy consumption.
The Association recommended that the USTR demand Canada revoke Bill C-202, which prohibits negotiators from discussing dairy market access. They also suggested modernizing certain USMCA chapters to prevent trade barriers and highlighted the significance of securing imported goods for U.S. dairy industry innovation, which involves over $11 billion in planned manufacturing investments.
