The probe, launched in 2024, had alleged that U.S. milk powder benefitted from government subsidies in a way that disadvantaged Colombian farmers, prompting preliminary duties of 4.86% on imports. U.S. dairy organizations, including the U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF), along with government officials, coordinated a detailed response demonstrating that Colombia’s methodology was flawed and that no actionable harm had occurred.

Industry leaders applauded Bogotá’s move to abandon the case. Krysta Harden, president and CEO of USDEC, underscored the importance of trading partners honouring market-access commitments and highlighted effective collaboration between U.S. industry groups and government to counter politically motivated trade barriers. Meanwhile, Gregg Doud, NMPF CEO, emphasized that the phased-out tariffs — fully eliminated as of early 2026 — testify to the strength of the trade agreement and the resolve of American dairy exporters.

Colombia’s action protects a market where U.S. dairy exports topped over $128 million in 2024, making it a strategic destination for American milk powders and other dairy ingredients. The tariff-free status under the trade agreement, which has been progressively eliminating duties since its inception, provides clear competitive advantage for U.S. exporters in South America — especially as global markets tighten and producers seek reliable low-barrier outlets.