After celebrating the removal of Mexico’s retaliatory tariffs earlier this month and the momentum that lent to support passage of the U.S.-Mexico-Canada Agreement, the U.S. Dairy Export Council expressed serious concern about the White House’s announcement yesterday to impose new duties on all imports from Mexico beginning June 10.
“Mexico is a trusted trade partner and ally and the dairy industry was looking forward to the resumption of a robust trade relationship with Mexico,” said Tom Vilsack, president and CEO of the U.S. Dairy Export Council (USDEC). “As Senator Grassley has indicated, this action may threaten forward movement on the USMCA ratification effort, which is a top priority for the dairy industry and the Trump Administration.”
The United States shipped $1.4 billion in dairy products to Mexico last year, accounting for 73 percent of Mexico’s dairy imports and more than one-quarter of U.S. dairy exports. USMCA, or the U.S.-Mexico-Canada Agreement, modernizes the North American Free Trade Agreement, maintains U.S. dairy sales into Mexico, expands dairy market access in Canada, and reforms many nontariff barriers. According to U.S. government estimates, dairy sales to Mexico and Canada should grow by $277 million once USMCA is fully implemented.