Local Matters

Community Sponsors

milk pricing

June 25, 2020 - 2:43pm

Press release:

After fiercely advocating for federal aid to New York’s dairy farmers in the beginning of the coronavirus (COVID-19) crisis, U.S. Senate Minority Leader Charles E. Schumer today urged United States Trade Representative Robert E. Lighthizer to quickly raise concerns about Canada evading its commitments under the United States-Mexico-Canada Agreement (USMCA).

Canada agree to eliminate harmful dairy trade practices, including its Class 7 pricing program (Class 6 in Ontario) and lack of transparency in milk-pricing regulations. Both were explicitly addressed in the agreement, which enters into force next week on July 1.

“New York’s dairy farmers are the lifeblood of the Upstate economy, but unfortunately, they have been squeezed by the economic effects of the COVID-19 crisis,” Senator Schumer said. “That is why I am calling on Ambassador Lighthizer to do everything in his power to ensure that Canada abides by its dairy trade obligations and eliminates its unfair and harmful pricing programs and practices that unfairly impeded Upstate New York dairy farmers from freely selling their product – as agreed to in the new trade agreement with Canada, the USMCA.

As the trade deal enters into force next week, it is imperative that our New York dairy farmers are able to sell their products into Canada and churn up profits that mitigate the huge losses they have suffered this year.”

“USMCA requires Canada to provide new market access for American dairy products and to eliminate its destructive Classes 6 and 7 milk pricing schemes,” said Jaime Castaneda, senior vice president for Policy Strategy and International Trade with the National Milk Producers Federation and the U.S. Dairy Export Council. “While not unexpected, Canada’s efforts to manipulate its agreed upon trade obligations to protect its tightly controlled dairy market are unacceptable.

"Canada needs to live up to the commitments it made to the U.S. on dairy. America’s dairy industry appreciates Senator Schumer for his leadership on this issue and we support Ambassador Lighthizer and Secretary Purdue as the U.S. works to hold Canada accountable to its commitments under USMCA.”

“Cayuga Milk Ingredients applauds the efforts of New York’s Senator Schumer for raising concerns over Canada’s recent request for dairy pricing secrecy within the Ontario Provincial Tribunal and their most recent administration of TRQs," said Kevin J. Ellis, CEO Cayuga Milk Ingredients. "On both issues, Canada is showing they have no desire to act in good faith with respect to the trade commitments they made underneath USMCA.

"Cayuga Milk Ingredients suffered a loss of nearly $24 million of sales in 2016 when Canada implemented a National Class 7 pricing scheme that was specifically and intentionally designed to stop the importation of ultra-filtered milk. Based on these latest events, it appears Canada cannot be trusted to honor its trade commitments with the United States,”

Craig Alexander, senior director, Milk Planning and Regulatory Affairs at O-AT-KA Milk Products in Batavia, said, “A foundation principle of the new USMCA pertaining to Canada was transparency of pricing formulation and the elimination of its Class 7 pricing. We appreciate Senator Schumer’s push for Canada to live up to its commitments in this agreement.

"Canada should not obscure information on pricing now in order to artificially create a pricing environment that will keep us at a disadvantage once these USMCA provisions go into force. Furthermore, Canada’s implementation of TRQs negotiated as part of USMCA and reserving increased access almost entirely to existing Canadian dairy companies is evidence that Canada has not changed its past history of circumventing trade agreements.

"If Canada simply held up their end of the deal on eliminating Class 7 and fair implementation of TRQs, we could again get a fair shake at the opportunities to serve the Canadian market going forward.”

Schumer explained that under USMCA, Canada agreed to eliminate Class 6 & 7 pricing within six months. However, the Senator revealed, Dairy Farmers of Ontario (DFO), which represents approximately 4,000 Canadian dairy farmers, has recently requested that Ontario’s tribunal, which provides an avenue of appeal on agriculture issues, grant restricted access to DFO’s pricing regulations.

Schumer argued that with only a few days left until the USMCA is set to enter into force, the lack of transparency and timing of DFO’s request raises questions about whether or not Canada is seeking to circumvent its dairy commitments in USMCA.

Additionally, Schumer pointed out, under USMCA, Canada agreed to an expansion of tariff rate quotas (TRQs) for several categories of U.S. dairy products. However, the U.S. dairy industry has raised concerns that Canada’s recently released TRQ allocations weaken the intent of USMCA and will prevent New York dairy farmers from fully benefiting from the agreement’s expanded market access opportunities.

July 18, 2018 - 2:12pm

Press release:

Last week, U.S. Senate Minority Leader Charles E. Schumer spoke directly to United States Trade Representative Robert Lighthizer to urge him to secure a level playing field with Canadian producers during the renegotiation of the North American Trade Agreement (NAFTA).

According to Schumer, in recent years, Canada has established dairy pricing policies and has maintained high tariffs that have effectively created a “Dairy Wall” -- stopping most U.S. dairy products from accessing Canadian markets and distorting global trade. Dairy farmers and producers from across New York State have been severely hurt by Canada’s manipulative and protectionist dairy trade practices, and it will only get worse without action.

Schumer, in his call, urged USTR Representative Lighthizer to press forward during NAFTA negotiations to secure free and fair trade for dairy farmers and producers in New York State and beyond. While NAFTA negotiations have stalled and there have been no scheduled NAFTA rounds, new rounds of negotiations are anticipated.

“During my call with United States Trade Representative Lighthizer, I made it clear that our hardworking New York dairy farmers and producers across Upstate New York are the most competitive in the world, but they depend on stable and fair rules to compete fairly in the nearby Canadian market," Senator Schumer said. "But Canada has erected a de facto protectionist ‘dairy wall’ and is not playing by the rules, and the current NAFTA renegotiation must be used to rectify that.

"I urged Representative Lighthizer to do more and do it now, so that dairy farmers and producers can finally compete on a level playing field, and am calling on him again to use this opportunity to fix the unfair Canadian dairy trade barriers that have plagued dairy farmers and producers across Upstate New York.”

Schumer explained Canada has an unfair advantage over New York dairy farmers and producers. In addition to Canada’s 270-percent tariff on milk, a program called the “Class 7” pricing program, a market-distorting supply management system, has caused severe pain to New York dairy producers since it came into force last year.

In fact, Canada has used the Class 7 program to triple its milk powder exports in the past year, by creating excess milk production capacity within Canada then dumping the resulting milk powder onto world markets. To further prove this dumping exists, Schumer added that Canada’s dairy farmers are some of the highest paid in the world, yet Canadian dairy companies are still able to be among the lowest cost sellers of Class 7 products globally.

Schumer made clear in his call that as the United States, Canadian and Mexican trade officials are closing in on a deal to revamp NAFTA, dairy farmers must be protected, and that more must be done to finally dismantle Canada’s market-distorting policies and ensure a level playing field for Upstate New York ’s dairy farmers and producers.

Schumer said that he has directly stressed the importance of securing meaningful changes in our dairy trade relationship with Canada to past and current administration officials, including President Trump, current United States Trade Representative Robert Lighthizer, Canadian Ambassador to the United States David MacNaughton, and the U.S. Ambassador to Canada Kelly Craft -- who have all committed to address this issue.

Recently, Schumer joined Senator Tammy Baldwin (D-WI) and Speaker Paul Ryan (R-Wisconsin) to urge U.S. trade officials to do more to secure a level playing field with Canadian producers during NAFTA negotiations.

Subscribe to

Calendar

S M T W T F S
 
 
 
 
1
 
2
 
3
 
4
 
5
 
6
 
7
 
8
 
9
 
10
 
11
 
12
 
13
 
14
 
15
 
16
 
17
 
18
 
19
 
20
 
21
 
22
 
23
 
24
 
25
 
26
 
27
 
28
 
29
 
30
 
 

Copyright © 2008-2020 The Batavian. All Rights Reserved. Privacy Policy | Terms of Service
 

blue button