U.S. dairy groups are urging the U.S. government to challenge Colombia’s decision to initiate an investigation into subsidies and countervailing measures for U.S. exports of powdered milk to the Latin American country.
National Milk Producers Federation and U.S. Dairy Export Council are also asking the U.S. government to prepare a plan to “leverage all available tools” should Colombia move forward with imposing countervailing tariffs on U.S. milk-powder exports.
In a letter to U.S. Trade Representative Katherine Tai and U.S. Agriculture Secretary Tom Vilsack, the groups said allegation made by the Colombia Ministry of Commerce, Industry and Tourism are a tariff threat without merit.
Domestic injury
The production, distribution and customer base for milk powder in Colombia’s large and diverse food processing sector is also significantly different than those in Colombia purchasing fluid milk.
“As such, the case fails to meet Colombia’s own requirements for demonstrating that the product under investigation is a ‘like product’ to the one manufactured by the domestic industry claiming injury,” the groups stated.
“There is no causal link between U.S. milk powder exports to Colombia and the injury claimed by the Colombian government in the investigation. This is particularly clear considering the different end users of Colombian fluid milk versus end users of U.S. milk powder in Colombia, most of which are food industry manufacturers,” they stated.
U.S. dairy farmers, processors and exporters shipped more than $8.1 billion worth of dairy products overseas in 2023, including about $70 million worth of milk powder to Colombia.
Protectionism
“Looking ahead, emerging markets, such as those in Latin America, will be critical to maintaining a vibrant U.S. dairy industry. Unfortunately, protectionist interests have grown in the region, highlighted by the Colombian government’s decision to initiate this investigation,” they said.
Members of Congress sent a letter to Colombian Ambassador to the United States Luis Gilberto Murillo in response to the investigation. The legislators said the U.S. dairy industry has a long-standing relationship with its counterparts in Colombia , including a recent agreement to share knowledge and advocate for mutually beneficial policies.
Strong message
It is imperative the U.S. respond to any imposition of countervailing duties by Colombia and send a strong message to all U.S. trading partners that unfounded attempts to block imports through misuse of trade policy tools will not be tolerated, they said.
The letter was signed by Reps. Jim Costa, D-Calif.; Adrian Smith, R-Neb.; Jimmy Panetta, D-Calif.; and Dusty Johnson, R-S.D.
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