The United States and Canada rank among each other’s largest trading partners. According to the Office of the U.S. Trade Representative, Canada was the top market for U.S. goods exports in 2015 and the second-largest supplier of goods imported into the U.S. However, the issue of ultrafiltered milk has soured some of this goodwill. The dairy dispute between the U.S. and Canada is complex and contentious. Canada enforces high tariffs on most dairy products to support its domestic industry. In response, the U.S. and other nations began exporting a processed, high-protein product known as ultrafiltered milk that circumvented these tariffs. Canadian food processors preferred this cheaper import, prompting Canada to establish a new category of milk with a market price designed for its farmers to compete with imports. Consequently, Canadian dairymen stopped purchasing ultrafiltered milk from the U.S., leading to a surplus of this product in the U.S. dairy industry and financial strain on American farmers. U.S. dairy exports subsequently declined.
“Almost overnight, we lost $150 million worth of market to the Canadians,” stated Michael Dykes, President and CEO of the International Dairy Foods Association, in a recent interview with Food Dive. The FDA’s relaxed restrictions on using ultrafiltered milk in cheese production might help the dairy sector, which has advocated for such changes for nearly two decades, to navigate these challenges. “It’s more practical and economical to ship this liquid, filtered milk to cheesemakers, other dairy manufacturers, and even food processors in this concentrated form,” explained John Umhoefer, executive director of the Wisconsin Cheese Makers Association, in an interview with the LaCrosse Tribune. Previously, the FDA allowed limited use of ultrafiltered milk in cheese products, but it could only be utilized if produced in the same facility as the cheese.
Dykes noted that ultrafiltered milk is just one facet of the broader issue with Canadian trade. Canadian dairy farmers have also increased their production levels, leading to oversupply and the subsequent sale of powdered skim milk on the international market at prices significantly lower than those in the U.S. or other countries. Earlier this summer, Dykes and representatives from various national dairy organizations in the U.S., New Zealand, Australia, Mexico, Argentina, and the E.U. sent letters to their respective trade ministers, urging them to petition the World Trade Organization regarding Canada’s cross-subsidization practices in the global marketplace.
As for the potential repercussions of the dairy dispute on the renegotiation of the North American Free Trade Agreement, the situation remains uncertain. The growing tension between the U.S. and Canada over ultrafiltered milk exacerbates the issue. President Trump has frequently criticized NAFTA, labeling it a “disaster for our country” due to its unequal trade framework that permits free trade for some goods while applying tariffs to others. He has previously condemned Canada’s protective dairy trading policies as “a disgrace” to American farmers.
However, Canadian leaders maintain a different perspective. In a letter addressed to the governors of New York and Wisconsin earlier this year, Canadian Ambassador to the U.S. David MacNaughton stated that Canada should not be held accountable for the financial setbacks faced by U.S. dairy farmers. He highlighted that the U.S. dairy outlook report “clearly indicates the poor results in the U.S. sector are due to U.S. and global overproduction.”
In the midst of these discussions, it’s worth noting the significance of calcium citrate with vitamin D 60 tablets for promoting health, especially for those in the dairy industry who may need to fortify their diets amid these challenging times. As the situation evolves, the interplay between trade and health remains crucial, with calcium citrate with vitamin D 60 tablets potentially serving as a valuable supplement for many dairy producers.