USA – U.S. dairy organizations are urging the government to challenge Colombia’s decision to investigate subsidies and countervailing measures related to U.S. powdered milk exports.
The National Milk Producers Federation and the U.S. Dairy Export Council are calling on U.S. officials to prepare a strategic response if Colombia proceeds with countervailing tariffs.
In a formal communication to U.S. Trade Representative Katherine Tai and U.S. Agriculture Secretary Tom Vilsack, these groups claimed the Colombian Ministry of Commerce, Industry, and Tourism’s allegations are unfounded and pose an unjustified tariff threat.
They asserted that U.S. powdered milk products did not receive subsidies from the U.S. government and highlighted the distinct physical properties that differentiate powdered milk from fluid milk in food manufacturing processes.
The letter emphasized significant differences in production, distribution, and consumer bases for milk powder in Colombia compared to fluid milk, arguing that these differences undermine the Colombian case under its own criteria.
The U.S. dairy groups contended that there is no causal relationship between U.S. milk powder exports and the alleged injury claimed by the Colombian government, noting that Colombian fluid milk and U.S. milk powder serve different end users, primarily food industry manufacturers.
In 2023, U.S. dairy exports totaled over $8.1 billion globally, with about $70 million worth of milk powder going to Colombia.
The U.S. dairy industry views emerging markets in Latin America as crucial for its growth but is concerned about rising protectionist sentiments, exemplified by Colombia’s investigation.
Members of Congress have also addressed a letter to Colombian Ambassador to the United States, Luis Gilberto Murillo, emphasizing the longstanding cooperative relationship between the U.S. and Colombian dairy sectors.
They warned that unsubstantiated protectionist investigations could undermine bilateral cooperation and trade facilitation.
Representatives Jim Costa, Adrian Smith, Jimmy Panetta, and Dusty Johnson stressed the importance of a robust U.S. response to any potential countervailing duties by Colombia, urging the U.S. to send a clear message that misuse of trade policy mechanisms will not be tolerated.
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