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Senators call for access to Canadian and Japanese dairy markets

As negotiations on the Trans Pacific Partnership trade deal resume this week; a bi-partisan group of 22 U.S. Senators sent a letter to U.S. Trade Representative Michael Froman urging the Administration to increase market access for U.S. dairy products into Canada and Japan as any part of a Trans Pacific Partnership.

The Senators list three priorities for any trade deal:

• Increase market access and reduce tariffs in Canada. They note Canada is the leading export market for U.S. dairy products valued at $592 million in 2014 but most of the product is shipped under Canada’s Import for Re-Export Program which means it ultimately returns to the U.S.
• Increase market access and reduce tariffs in Japan. Japan is also a good U.S. customer buying $407 million in dairy products in 2014 but it imposes high tariffs and other trade barriers on U.S. products.
• The Senators want assurances that the dairy industry will gain significant market access to Canada and Japan enough to balance any new U.S. market access granted to New Zealand in the trade agreement.

Last week, 21 House members sent a letter to Canada’s Ambassador to the U.S. saying they could not support any trade deal that did not include increased access to the Canadian dairy market.