Industry Organizations Urge Resolution of Outstanding Issues With Canada and Mexico
ARLINGTON, Va. — U.S. dairy industry organizations are calling for targeted reforms and stronger enforcement measures as the United States, Mexico and Canada begin the first Joint Review of the U.S.-Mexico-Canada Agreement (USMCA), a process that will evaluate the effectiveness of the trilateral trade pact and help determine its future direction.
The comments were issued by Shawna Morris, executive vice-president of the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC), as governments from the three North American countries formally launch the review process outlined in the trade agreement.
The review comes at a significant time for North American agriculture and food industries, particularly the dairy sector, which relies heavily on cross-border trade and integrated supply chains.
Dairy Sector Emphasizes Importance of North American Trade
According to the organizations, maintaining a strong and effective USMCA framework is essential for the continued growth of dairy exports and long-term industry stability.
“As the United States, Mexico, and Canada launch the first Joint Review of the U.S.-Mexico-Canada Agreement (USMCA), we commend the ongoing efforts to resolve outstanding issues and work toward a renewal of this vital agreement. Getting USMCA right matters enormously to our industry, which ships more than 40 percent of all U.S. dairy exports by value to Mexico and Canada.”
The statement highlights the economic importance of North American dairy trade and underscores the industry’s interest in ensuring that the agreement continues to provide predictable market access across the region.
Mexico remains the largest export destination for U.S. dairy products, while Canada represents another strategically important market under the trade framework.
Concerns Raised Over Product Naming Rights
One of the key priorities identified by the dairy organizations involves protecting the use of common food product names in international trade.
The groups argue that a renewed agreement should safeguard producers in both the United States and Mexico from restrictions linked to geographical indications, which are often promoted by the European Union to protect region-specific product names.
“Mexico is our most important trading partner, and our dairy industries are deeply integrated. It is critical that a renewed USMCA fully protect the free trade of common name products, particularly against any EU-imposed geographical indication restrictions. Protecting the ability of both U.S. and Mexican producers to use common names is essential to preserving the integrated market we’ve built together.”
Industry representatives contend that preserving access to commonly used product names is important for maintaining competitiveness and avoiding trade barriers that could affect market access.
Canada’s Dairy Policies Remain a Central Issue
The organizations also used the launch of the Joint Review to renew criticism of Canada’s implementation of certain dairy-related commitments under USMCA.
According to the groups, the agreement was intended to create new tariff-rate quota opportunities and establish limits on dairy protein exports that they argue could affect global market conditions.
“On the Canada side, USMCA was designed to deliver two key reforms: targeted new tariff-rate quotas and real disciplines on Canada’s ability to distort global dairy markets through unlimited exports of artificially underpriced dairy proteins. Canada has flagrantly disregarded both commitments, underscoring exactly why this Review is such an important tool. A renewed agreement must fix what isn’t working.”
Trade disputes involving Canada’s dairy market have remained a recurring issue since USMCA entered into force in 2020, with disagreements over market access and quota administration leading to multiple rounds of consultations and dispute settlement proceedings.
Support for Continued Negotiations
The dairy organizations expressed support for ongoing efforts by U.S. trade officials to address unresolved concerns and strengthen the agreement during the review process.
“We strongly support the U.S. government’s efforts to address these challenges and urge focused, intensive work by our trading partners to resolve them. A stronger, durable, renewed USMCA is key to the long-term prosperity of dairy producers and exporters across North America.”
Review Seen as Key Test for Trade Agreement
The Joint Review represents an important milestone for USMCA, which replaced the North American Free Trade Agreement (NAFTA) and established updated rules governing trade among the three countries.
For the dairy industry, the process provides an opportunity to assess whether the agreement is delivering the market access and regulatory commitments originally envisioned. Stakeholders across the sector will be closely watching negotiations as governments seek to resolve longstanding disputes and determine the future framework for North American trade cooperation.
With dairy exports playing a significant role in regional agricultural commerce, industry groups say a renewed and strengthened USMCA will be critical to supporting producers, processors and exporters throughout North America in the years ahead.