Letter to U.S. Trade Representative Michael Froman and Tom Vilsack, Secretary of the Department of Agriculture - Senator Demands Feds Ensure Canada Plays By The Rules

Letter

Dear Ambassador Froman and Secretary Vilsack:

I write to you with strong concerns about reports that Canada is weighing policy and regulatory shifts that would undermine one of New York's most important export markets. Just a few years ago, two dairy companies made investments worth tens of millions of dollars in Upstate New York to produce ultra-filtered milk specifically for export to the Canadian cheese market. These sales are possible as a result of the duty-free access for this specific product that Canada agreed to under the North American Free Trade Agreement.

Recent reports indicate that Canada is considering administrative actions to limit Canadian companies' capacity to use this product in further processing and that Ontario is advancing a new, targeted pricing policy designed to crowd out New York's dairy sales. Further restraints on dairy trade are unacceptable, particularly coming on the heels of Canada's recent pledge to expand access to its tightly restricted dairy market under TPP.

New York has made sizable investments in exporting into Canada under specific rules laid out by the Canadian government. Those sales now help support dairy farmers and rural communities across the state. New Canadian barriers to market access would have an outsized impact on New York's dairy sector. As the country's third largest milk producing state, a significant impact on New York's ability to tap into key foreign markets also will impact farmers in surrounding states in the northeast and Mid-Atlantic region. Moreover, this latest example of dairy market-access restrictions appears to represent a continuation of persistent Canadian regulatory and policy shifts aimed directly at impeding dairy trade.

We must hold Canada to its commitments and ensure that our exporters do not encounter barriers to the products they are already shipping to Canada. I urge you to strongly reject this and similar efforts to impair the value of concessions the U.S. previously secured under NAFTA. Thank you for your attention to this important priority with one of this country's largest trading partners.

Sincerely,

Charles E. Schumer

United States Senator

Source