Leahy And Others Introduce Bill
To Close Loophole In Dairy Import Rule
That Hurts Vermont Dairy Farmers

WASHINGTON (Thurs, March 6) – Sen. Patrick Leahy (D-Vt.) joined Sens. Larry Craig (R-Idaho) and Mark Dayton (D-Minn.) Thursday in introducing legislation to close a loophole in current trade law that allows certain dairy products to be imported into the United States tariff-free.  The importation of dairy proteins has increased by more than 600 percent over the past six years while all other diary imports have been strictly regulated by tariff rate quotas.

Foreign dairy farmers have found a loophole in the regulations that allow them to circumvent laws by adjusting the protein content of nonfat dry milk so that it is classified by the U.S. Customs Service as milk protein concentrate (MPC).  A study compiled by the Government Accounting Office (GAO) reports that MPC imports have increased by more than 600 percent over a six-year period.  These imports lower prices for American dairy farmers by displacing sales of nonfat dry milk.

The legislation, The Milk Import Tariff Equity Act, would regulate MPCs in the same manner as all other dairy products by imposing tariff rate quotas on MPC imports. The bill currently has 18 cosponsors in the Senate.

“Closing the MPC loophole is one of the most important steps we can take to help our nation’s dairy farmers,” Leahy said.  “Our nation’s hardworking dairy farmers need our help to continue producing a much needed commodity in Vermont and across the nation.  An obvious oversight on the part of those responsible for creating fair trade tariffs has left our milk producers at a disadvantage.”

Leahy has been a long-time champion of Vermont’s dairy farmers.  He championed the Northeast Interstate Dairy Compact and the current “MILC” program that has brought Vermont farmers about $25 million since its inception. 

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