Support Milk Import Tariff Equity Act (MITEA)!

03/14/2003

• On March 6, 2003, The House and Senate Introduced Legislation ( H.R. 1160 and S. 560 ) that Would Impose Tariff-Rate Quotas on Certain Casein and Milk Protein Concentrates (MPC) and Restrict the Flow of Imported Dairy Proteins into the U.S.
• The Price that Dairy Farmers Receive has been Driven Down to Near-Record Low Levels by a Surge of Imported Dairy Proteins.
• Please Contact your Senators and Representative to Urge them to Cosponsor H.R. 1160 and S. 560.

H.R. 1160 and S. 560 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). The new legislation represents a broad bipartisan effort in both congressional chambers. Currently, U.S. trade laws impose virtually no tariffs on these products, although the U.S. does apply Tariff-Rate Quotas to related dairy products including nonfat dry milk and cheese. There was no Tariff-Rate Quotas on MPC because it was a relatively new product when the Uruguay Round WTO Agreement was negotiated. In the case of casein, most of the casein imported prior to the Uruguay Round went to industrial uses, while recently the share of casein going into food products has risen dramatically.

This is an issue affecting the livelihood of America's 75,000 dairy farm families because domestic prices have been depressed by imports displacing domestically produced products. Current farm-level prices are the lowest in 25 years. Because of the lack of tariffs on imports, dairy producers in the U.S. are burdened with weak commodity prices that do not sufficiently cover their costs of production. Over the past five years, yearly imports of MPC have risen to 350-400 million pounds, displacing 4 to 4.6 billion pounds of U.S. domestic milk production. (Refer to our action alert on 9/20/02) MPC imports doubled between 1998 and 1999 alone. Dairy farmers have lost an average of $150 million per year in income between 1994 and 2000 due to MPC imports.

The Bill's Provisions

• The bill would close this loophole by regulating MPC imports in the same manner all other dairy product imports are regulated--by establishing new tariff-rate quotas on MPC.
• It also would close a similar loophole that exists for casein used in the production of food or feed, while continuing to allow unrestricted access for imports of casein used in the manufacture of glues and for other industrial purposes.
• To the extent it is necessary, the bill authorizes the President to offer GATT Article (28) XXVIII tariff concessions on other products to trading partners whose exports of true casein and true milk protein concentrates are limited by this action. The value of compensation is provided with additional access, no monetary compensation is necessary.

The National Grange's policy on dairy imports is summarized in our policy book:

The National Grange opposes the importation of caseinates and urges the adoption of tariff rate quotes on Milk Protein Consentrates entering the country.

Action Plan --- Please contact your Senators and House Representative to urge them to cosponsor H.R. 1160 and S. 560. If you want to find your Senators and House Representative contact information, please click the following.

Senators
House Representative

Also, please contact the leaders in the Committee on Finance in the Senate, and the Committee on Ways and Means in the House and express your support for H.R. 1160 and S. 560.

If you have any questions or comments please contact Legislative Research Analyst Chil-Sook Hwang by fax: 202-347-1091 or by phone: 1-888-4GRANGE, ext 109. Thank you for your grassroots participation in the National Grange Legislative program.

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