Dairy sector welcomes U.S. call to drop trade action - Vilsack likely to oppose the proposal

  • National Newswatch

Ottawa-Canadian farmers and processors are welcoming a call by a U.S. coalition for the Biden administration to cancel a trade action started in the final days of the Trump administration over Ottawa's handling of dairy import quotas. The coalition of 18 agriculture and labour groups says Washington should stop fighting Canada's supply managed system in dairy and poultry because doing so would only assist dairy companies but not farmers. “Continuing to pursue this complaint is clearly out of step with the new administration's stated commitments to reform the U.S. trade agenda to be pro-worker rather than a business-as-usual approach that actively favors multinational corporations,” the coalition said. The request was made to Senate committees hearing from Tom Vilsack, Biden's nominee for agriculture secretary and Katherine Tai, the nominee for U.S. trade representative, CBC said in a report. The coalition includes the National Family Farm Coalition and the Wisconsin Farmers Union. Pierre Lampron, President of Dairy Farmers of Canada, said, “The letter suggests that contrary to what some would have you believe, organizations south of the border – including those representing dairy farmers – understand the value of a supply management system. It is our hope that the new administration is paying attention to the representations from these groups.” The Dairy Processors Association of Canada said, it “is certainly not surprising to hear calls for the U.S. to adopt a system similar to Canada's supply management system. Global dairy markets have been extremely volatile in recent years, and the U.S. has not been spared from this trend. DPAC said it appreciated the calls for the USTR to drop its complaint against Canada's dairy import system. It noted that International Trade Minister Mary Ng says Canada is meeting its obligations under the North American trade deal. CUSMA. DPAC said the federal government's allocation of import quotas is consistent with the terms of the agreement. “It is important to remember that this is an agreement that, with regard to dairy, is completely one-sided. When fully implemented, CUSMA will result in $138 million in annual losses for dairy processors in Canada through imports and restrictions on Canada's dairy exports,” DPAC said. “The government's own analysis has stated that CUSMA creates no new opportunities or benefits for the industry.” Vilsack, who was former president Barack Obama's agriculture secretary, has long criticized Canada's supply management system ad for the last few years headed. In 2017, he became the head of the U.S. Dairy Export Council, known for its opposition to supply management. Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.