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Groups Call for Elimination of Canadian Milk Pricing Program, Maintaining Tariffs on Canadian Sugar in NAFTA

Groups are pushing for the elimination of milk pricing programs that push U.S. products out of the Canadian market and for the U.S. to maintain tariffs on Canadian sugar in any renegotiated NAFTA agreement, according to comments filed with the International Trade Commission. Among the National Milk Producers Federation’s (NMPF’s) top priorities for talks is “the decisive confrontation and resolution of nontariff concerns,” including the removal of Canadian milk pricing classes 6 and 7, and the continuance of Canadian dairy tariffs, the group said. Canada’s milk pricing strategy often leads to Canadian products being sold at prices far below “even the lowest of prevailing world commodity prices,” NMPF said. Also a top priority for NAFTA would be improving rules-based areas with respect to Mexico and dairy trade, such as introducing new commitments on geographical indications and on sanitary and phytosanitary issues, the group said.

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The American Sugar Alliance said eliminating tariffs on imports of sugar and sugar-containing products from Canada would substantially increase imports of refined sugar and sugar-containing products from the country. This would worsen the U.S. sugar industry situation and undercut the U.S.-Mexico sugar duty suspension agreement in principle earlier this month (see 1706070016), the alliance said. The comments were filed after the ITC launched an investigation into the economic effects of providing duty-free treatment for currently dutiable imports (see 1705310009). The NMPF, the American Sugar Alliance and Cato Institute commented.

Email ITTNews@warren-news.com for copies of the comments.