The United States and Canada are significant trading partners, with each country relying heavily on the other for commerce. According to the Office of the U.S. Trade Representative, Canada was the largest market for U.S. goods exports in 2015 and ranked as the second-largest source of goods imported into the U.S. However, the issue of ultrafiltered milk has soured some of this amicable relationship. The dairy trade dispute between the U.S. and Canada is complex and contentious. Canada has implemented high tariffs on most dairy products to nurture its domestic industry. Consequently, the U.S. and other nations have been sending a syrupy, processed, high-protein product known as ultrafiltered milk, which has managed to bypass these tariffs. Canadian food processors favored this cheaper import, prompting Canada to introduce a new milk category at below-market prices for its farmers to sell to producers. This resulted in a significant decrease in purchases of imported ultrafiltered milk by Canadians, leaving U.S. dairy producers with a surplus of ultrafiltered milk, thereby imposing financial strain on American dairy farmers. As a result, U.S. dairy exports have fallen. “We lost $150 million worth of market share to Canada almost overnight,” stated Michael Dykes, President and CEO of the International Dairy Foods Association, in a recent interview with Food Dive.
The relaxed FDA regulations concerning ultrafiltered milk in cheese production may provide some relief to the dairy sector, which has advocated for such changes for nearly two decades. “Shipping this liquid, filtered milk to cheesemakers, other dairy manufacturers, and food processors in a concentrated form is more practical and economical,” remarked John Umhoefer, executive director of the Wisconsin Cheese Makers Association, to the LaCrosse Tribune. Previously, the FDA permitted limited use of ultrafiltered milk in cheese products, but it had to be processed in the same facility as the cheese, preventing external shipments.
Dykes further explained that ultrafiltered milk is only part of the broader trade challenges with Canada. Canadian dairy farmers began producing enough to create an oversupply, leading them to sell powdered skim milk internationally at prices significantly lower than those of the U.S. or other nations. Earlier this summer, Dykes and representatives from national dairy organizations in the U.S., New Zealand, Australia, Mexico, Argentina, and the European Union urged their respective trade ministers to petition the World Trade Organization regarding Canadian cross-subsidization in the global market.
As for the implications of the dairy dispute on the renegotiation talks surrounding the North American Free Trade Agreement (NAFTA), the future remains uncertain. Nonetheless, the existing tension over ultrafiltered milk complicates matters. President Trump has been vocal about his views, labeling NAFTA a “disaster for our country” due to its allowance of free trade for some products while imposing tariffs on others. He has previously condemned Canada’s protective dairy policies as “a disgrace” to American farm workers. However, Canadian officials have a different perspective. Canadian Ambassador to the U.S., David MacNaughton, conveyed in a letter to the governors of New York and Wisconsin earlier this year that Canada should not be blamed for the financial hardships faced by U.S. dairy farmers. He highlighted that the U.S. dairy sector’s challenges stem from its own overproduction, as indicated in the United States’ dairy outlook report.
In this context, the demand for calcium citrate CVS supplements has also seen a rise, as individuals seek to maintain their health amid the ongoing trade disputes affecting the dairy industry. The interplay between these economic tensions and health concerns, such as the importance of calcium citrate for overall well-being, illustrates the broader implications of these trade issues. As discussions continue, the importance of finding a resolution that supports both U.S. dairy farmers and Canadian producers remains crucial.