Dear Ambassador Lighthizer:
As you work to complete negotiations on revisions to NAFTA, I urge you to continue
pressing for meaningful action to address Canada's problematic dairy policies. Canada's
prohibitive tariffs on most dairy products and its market distorting supply management system
currently present significant challenges to U.S. dairy farmers and dairy producers seeking to sell
to Canada.
In addition, Canada's recent changes to its supply management system for ultrafiltered
milk and milk powder have created challenges for the U.S. dairy industry. Last year, Canada's
policy changes regarding ultrafiltered milk caused a number of Minnesota dairy farms to lose
their buyers with barely a month's notice -- threatening the livelihoods of many farmers. Further,
recent changes to milk powder pricing in Canada threaten to flood world markets and depress
prices, robbing U.S. farmers of critical export markets at a time when farmers are already
struggling with high costs and low prices for other milk products.
In November 2017, you revised your NAFTA negotiating objectives by adding new
objectives including to "eliminate remaining Canadian tariffs on imports ofU.S. dairy," and
"eliminate unjustified measures that unfairly limit access to Canada's markets and unfairly
decrease market access opportunities in third countries for U.S. dairy products, such as cross
subsidization, price discrimination, and price undercutting."
I support your negotiating objectives with respect to Canadian dairy markets, and I urge
you to do all you can to address the concerns with Canada's market as part of any revised
NAFTA agreement.
Thank you for your attention to this critical matter.
Sincerely,