The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) are urging the Senate and House to act quickly on new Trade Promotion Authority (TPA) legislation, saying the measure is crucial to securing well-negotiated trade agreements that open foreign markets to more U.S. dairy products.
The bipartisan TPA legislation was introduced on April 16 in the Senate by Senate Finance Committee Chairman Orrin Hatch (R-Utah) and senior committee Democrat Sen. Ron Wyden (D-Ore.), and in the House, by Ways and Means Committee Chairman Rep. Paul Ryan (R-Wis.).
NMPF and USDEC says renewing TPA, which expired in 2007, is particularly important to the U.S. dairy industry because America now exports the equivalent of one-seventh of its milk production. TPA is the key to unlocking future export opportunities, the groups say.
“Because world trade has become a major driver of U.S. dairy farmer income, we need well-designed free trade agreements to keep expanding our exports,” says NMPF President and CEO Jim Mulhern.
“All of the past trade agreements that were well-negotiated have been beneficial to the U.S. dairy industry. None of those have been implemented without Congress first approving trade negotiating authority.”
USDEC President Tom Suber adds, “Knowing that a trade agreement will be considered by Congress under trade promotion authority paves the way to press our negotiating partners to make their best offers on the most sensitive issues. Clearly, dairy exports fall into that category, and the U.S. needs all the tools it can muster to get the best possible deal.”
The two organizations say TPA also allows U.S. negotiators to prioritize negotiations about products that are subject to significantly higher tariffs in key foreign markets.
“This is extremely important for our industry since foreign dairy tariffs are often extremely high,” says Mulhern.
Finally, NMPF and USDEC say TPA will increase congressional influence over trade negotiations and lead to agreements that are better for both the country and the dairy industry.
“By having a framework for participating in the process and clearly identified priorities, Congress increases its influence over these agreements as they are being written,” says Suber. PD
—From National Milk Producers Federation and U.S. Dairy Export Council news release
