IDFA Commends Senate For Defeating Dairy Tariff
US - During Senate Finance Committee considerations last week, Senator Olympia Snowe (R-ME) offered an amendment to place tariffs on milk proteins that was defeated in committee by a voice count. IDFA had opposed the amendment, which was attached to legislation under consideration as part of the committee's Farm Bill tax package.
9 October 2007
2 minute read
"A tariff on milk proteins would have been viewed as trade protectionism, and it would have sent the wrong message to the members of the WTO,"
Helen Medina, IDFA manager of international and regulatory affairs.
"Dairy processors in this country are making more and more value-added dairy ingredients, and the U.S. dairy industry recorded its best year ever for exports in 2006. We just don't need unnecessary protectionist measures to be competitive in the dairy ingredients market," said Jerry Slominski, IDFA senior vice president of legislative affairs.
"IDFA would like to thank Senate Finance Committee Chairman Max Baucus (D-MT) and Ranking Member Charles Grassley (R-IA), who both worked hard to defeat this amendment that would have violated are our U.S. trade agreements. We are also pleased that Senator Pat Roberts (R-KS) voiced his opposition to a measure that would have invited our trading partners to take steps to retaliate against U.S. dairy exports," Slominski said.
The United States has been a strong advocate for concluding the World Trade Organization (WTO) Doha negotiations, which are attempting to reform and liberalize global trade policies for the 150 member nations. Differing views on agricultural issues have become a main obstacle to agreement, and the United States has consistently urged the European Union, India and other countries to lower their agriculture tariffs.
"A tariff on milk proteins would have been viewed as trade protectionism, and it would have sent the wrong message to the members of the WTO," said Helen Medina, IDFA manager of international and regulatory affairs. "If the amendment had passed, our country's credibility with the WTO would have been damaged."
Congress has discussed raising tariffs on milk protein ingredients many times over the years, often causing heated debate on Capitol Hill. But legislation that would impose duties on dairy proteins has yet to move beyond Senate and House committees.
IDFA will continue to oppose new legislative efforts to tax milk protein imports. These bills would increase costs for a wide range of consumer products that use imported proteins because domestic production is insufficient to meet the demand. Currently, milk proteins enter the United States with minimal duties and are important ingredients in many foods that Americans enjoy every day, including processed cheese products
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