The U.S. Might Cry Over Powdered Milk

Dairy drama! Colombia is having a cow over U.S. milk powders, claiming they are subsidized by the government. 

So what does this mean?

Soundbite: “It means that the other country is alleging that there are subsidies by the exporting party that are making the product being exported… cheaper than it should be. That is, of course, baseless. There is absolutely no foundation to these arguments.” — Shawna Morris, U.S. Dairy Export Council

The facts: According to the National Milk Producers Federation (NMPF) and U.S. Dairy Export Council (USDEC), U.S. powdered milk doesn’t receive subsidies and is not the same as Colombian fluid milk. The groups are asking the U.S. government to fight back if Colombia imposes tariffs.

Kind of a big deal: The U.S. exported about $70M in milk powder to Colombia last year. If Colombia imposed tariffs, they would definitely hurt.

Making mooves: Several U.S. representatives have sent a letter to the Colombian Ambassador to the U.S. explaining that the U.S. and Colombia should work together to strengthen the dairy sector and not launch “damaging protectionist investigations.” 

Meanwhile, Agriculture Undersecretary for Trade and Foreign Agricultural Affairs Alexis Taylor said she discussed U.S. milk powder imports and feed corn imports during a trade mission to Colombia this past week.

It is rumored that the Colombian government wants to restrict U.S. corn imports to help small Colombian farmers, but no action has been taken. Taylor is hopeful Colombia will not go through a full investigation.