DNMPF ENDORSES LEGISLATION CURTAILING MILK PROTEIN IMPORTS
House, Senate Bills Would Impose Quotas On Imported MPC, Casein Products

ARLINGTON, VA – The National Milk Producers Federation threw its support today behind new legislation that would restrict the flow of imported dairy proteins into the U.S.

The new legislation introduced Thursday represents a broad bipartisan effort in both congressional chambers. The Milk Import Tariff Equity Act (MITEA) of 2003 is being introduced by Sens. Larry Craig (R-ID) and Mark Dayton (D-MN), and Reps. Don Sherwood (R-PA) and David Obey (D-WI). The Senate version of the bill already has more than 15 original cosponsors, while the House’s identical version of the bill has more than 55 cosponsors.

The legislation would impose Tariff-Rate Quotas (TRQs) on imports of milk protein concentrate, and casein products intended for use in the food and animal feed industries (casein also has non-food, industrial applications, which would not be covered by the legislation). Currently, U.S. trade laws impose virtually no tariffs on these products, although the U.S. does apply TRQs to related dairy products including nonfat dry milk and cheese.

NMPF, along with other farm organizations, contend that the unrestricted flow of milk protein products is displacing domestically-produced nonfat dry milk (NDM) powder in the manufacture of cheese and other foods, leading to lower farm-level prices and the buildup of surplus stocks of NDM powder.

“Poorly-constructed U.S. trade laws have left open our back door to these imports, which are entering our country and taking money out of the pockets of America’s dairy producers,” said Jerry Kozak, President and CEO of NMPF. “This legislation is not the only way to address crushingly-low milk prices, but any recovery in milk prices will be hampered unless Congress does something about these imports.” Current farm-level prices are the lowest in 25 years, leading to enormous economic duress for dairy producers of all sizes in all regions of the country.

MPC imports have grown remarkably since the mid-1990s, rising from an average of 111 million pounds (nonfat milk equivalent) between 1995-1997, to an average of 266 million pounds from 2000-2002. NMPF has calculated that dairy farmers have lost an average of $150 million per year in income between 1994 and 2000 due to MPC imports.

That growth over the past decade is largely the result of the fact that the 1994 General Agreement on Tariffs and Trade (GATT) did not impose tariff rate quotas on MPC, even though similar products such as skim milk powder were covered.

“This oversight has tilted the international dairy playing field against the U.S. dairy producer community, and the only way to rectify this imbalance is through this legislation,” according to Kozak.

Under the MITEA bill, new TRQs would be imposed on milk protein concentrate and on casein. The tariff rate would be consistent with U.S. tariffs on similar dairy products. The legislation contains language directing the U.S. government to ensure that new TRQs are consistent with the terms of the GATT agreement.

“We can’t turn back the clock to 1994 when MPC imports were barely a trickle, but we can turn back the tide and prevent continued unrestricted access to our markets in the future,” Kozak said. “This legislation will save taxpayers money, improve the economic outlook for dairy farmers, and send a signal to foreign dairy interests that the U.S. is willing to take steps to level the playing field for its producers,” he said.

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