Source: National Milk Producers Federation
The U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) today expressed their strong disappointment with a preliminary ruling by Colombia’s government that unfairly targets U.S. dairy exporters by advancing baseless claims that U.S. milk powder was unduly subsidized. The groups called on U.S. trade officials to take immediate action to challenge Colombia’s unjust decision and defend American dairy farmers and exporters.
Based on the announcement by Colombia, the preliminary findings call for an additional 4.86% tariff to be implemented on U.S. milk powder exports.
USDEC and NMPF have been working closely with allies in Colombia as well as their members to demonstrate that no U.S. milk powder going to Colombia is subsidized and that Colombia’s dairy sector challenges are due to a variety of other factors. Even the Colombian government acknowledged that there are “many elements that currently affect the Colombian dairy sector”.
“It’s extremely unfortunate that the Colombian government has chosen to use these politically motivated allegations to impose protectionist trade barriers, which will ultimately not only harm U.S. exporters, but Colombian companies and workers who rely on U.S. dairy products and ingredients,” said Krysta Harden, president and CEO of USDEC. “The U.S. government must act promptly and forcefully to send a message that these sorts of tactics will not be tolerated.”
“Today’s preliminary findings show yet again that the current Colombian government does not respect its trade commitments,” said Gregg Doud, president and CEO of NMPF. “Instead of working with the U.S. government and dairy industry to resolve this issue in a mutually beneficial way, Colombia has instead chosen to move forward with this meritless investigation. The U.S. government must use every tool at its disposal to counter the unwarranted tariffs on U.S. milk powder.”
Colombia proceeded with the preliminary imposition of new tariffs on U.S. milk powder exports without evidence of damage caused by those products on its producers or any indication that government support to U.S. dairy farmers resulted in lower U.S. milk powder prices. The action follows a similar case Colombia initiated against U.S. ethanol exports, along with unwarranted import bans on U.S. poultry and beef exports.
The next steps in the investigation include the collection of further evidence by the Colombian government and a public hearing to consider arguments in the case near the end of the evidentiary period. The preliminary tariff will be in effect for four months as the investigation moves forward. A final determination to impose tariffs could be maintained for up to five years prior to review.
