US dairy groups make Mexico a priority

US dairy groups are calling for Mexico to be a priority in the new NAFTA negotiations. The groups also want trade barriers with Canada to be lifted. 

The deadline to provide input for the revision of the trade agreement was June 12, 2017. According to the US Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF), America has gone from being a major importer to a major exporter of products. As a result, the export of dairy has recently doubled.

NAFTA has achieved a lot
"The trade agreement has achieved a lot in recent decades, but it is currently being beset with new and unforeseen trade barriers." So says Tom Vilsack, director of USDEC. “Therefore, we certainly agree that NAFTA could use a facelift. The dairy industry is also looking forward to working with the Trump Administration.”

In addition to Mexico, Canada is also a large part of the comments submitted by the dairy groups. The biggest request is for the Trump Administration to ensure that Canadian milk price classes 6 and 7 are removed. Canadian dairy tariffs must also be included in the trade agreement.

Preserving trade with Mexico
In 2016, the US exported more than $1,2 billion worth of dairy products to Mexico. By comparison, in 1995 it was just $124 million. As a result, Mexico is now the largest export market for American dairy producers. Canada follows in second place. However, only half of that 1,2 billion goes there.

“A modernized NAFTA agreement must maintain a reliable trade relationship with Mexico. In doing so, the remaining barriers to trade not addressed in the original agreement must also be removed," said Jim Mulhern, president and CEO of NMPF.

All in all, the input from the US dairy groups should above all make it clear that they are against the imposition of new market barriers.

Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

k.baker @boerenbusiness. Nl

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