Issue Position: Agriculture - Dairy and Milk Protein Concentrates

Issue Position

Milk Protein Concentrate (MPC) is a substitute for domestically produced non-fat dry milk. When the GATT was negotiated, the United States agreed to give up its Section 22 dairy quotas and replace them with a system of tariffs. However, no tariff was adopted for MPC because, in large part, the technology by which it is manufactured was not widely used and MPC production was almost non-existent. Since then, however, ultrafiltration has become much more common in places like New Zealand and the European Union, and exporters there have begun to exploit the loophole in our tariff law to bring in growing volumes of MPC -- increasing imports more than 600% since 1995.

A number of my colleagues and I have been involved in an effort to close this loophole by introducing H.R. 1160. H.R. 1160 is a GATT consistent bill that provides authority to renegotiate tariffs under Article XXVIII. GATT authorizes action if there was never any intention to provide access to a product. GATT authorizes action if imports of an article are occurring in such increased quantities as to be a substantial cause of injury. Our legislation closes the MPC loophole so that imported milk protein products are treated fairly but consistently under our tariff laws.

I continue to be concerned by the seriousness of the ongoing crisis facing the dairy industry in Idaho and throughout the country. Since being elected to Congress, I have met with hundreds of farmers from Idaho and heard firsthand about the serious financial situation many producers are facing. Low prices, surplus production, lack of market access, foreign subsidies, and uncompetitive trade practices are all factors contributing to the agriculture crisis.

I look forward to continuing my work with Idaho's dairy producers to meet the challenges facing their industry.

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