WASHINGTON, D.C. – U.S. Senators Amy Klobuchar and Al Franken, and Representatives Collin Peterson and Tim Walz, have urged the Trump Administration to support Minnesota dairy farmers through strong enforcement of our trade laws with Canada. Grassland Dairy Products, Inc. has ended a number of dairy contracts in Minnesota as a result of lost sales to Canada which are a result of new Canadian dairy regulations which took effect in February in most provinces. These regulations present an impermissible trade barrier for the dairy industry in Minnesota and the United States. In a letter to President Trump, the lawmakers urged the Administration to take steps to address this issue in the short term, but to also directly engage the Canadian government to ensure their compliance with current trade agreements in the long term.
“Minnesota dairy farmers are already beginning to feel the harmful effects of these recent decisions by the Canadian government. We urge you to work to support our farmers through strong enforcement of our trade laws with Canada. Thank you for your time and immediate consideration of our requests. We look forward to working with you on these issues,” wrote the lawmakers.
The full text of the letter is below.
Dear Mr. President,
We write today to express deep concern over troubling developments facing dairy farmers in our region. Grassland Dairy Products, Inc. has ended a number of dairy contracts in our state as a result of lost sales to Canada. Grassland's Vice President of Business Development has reported that the decision will impact one million pounds of milk per day. The reductions are a result of new Canadian dairy regulations which took effect in February in most provinces. These regulations present an impermissible trade barrier for the dairy industry in our region.
To address this emergency in the near term we urge the Administration to negotiate with the Canadian government an immediate hold on the Class 7 National Ingredient Strategy and the province of Ontario's Class 6 pricing program. If this new Canadian policy to discourage its processors from using imported ultra-filtered milk is allowed to continue, it will continue to depress low prices, intensify oversupply, and threaten multi-generational Minnesota dairy farms. Several of our state's producers have received letters notifying them that their milk supply will no longer be accepted starting May 1.
In the longer term the Administration must directly engage the Canadian government to ensure their compliance with current trade agreements. While we understand that the Administration is determining its priorities for possible discussions with our North American Free Trade (NAFTA) partners, a separate investigation into the implementation of these two policies - the Class 7 National Ingredients Strategy and Ontario's Class 6 pricing program - is needed to determine whether they violate existing trade commitments.
In 1997, the Office of the U.S. Trade Representative challenged Canada's dairy trade practices and a subsequent World Trade Organization (WTO) dispute settlement panel found that elements of Canada's special milk class system violated WTO obligations. We believe this situation may be similar and ask that the Administration explore it fully.
Minnesota dairy farmers are already beginning to feel the harmful effects of these recent decisions by the Canadian government. We urge you to work to support our farmers through strong enforcement of our trade laws with Canada. Thank you for your time and immediate consideration of our requests. We look forward to working with you on these issues.
Sincerely,
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