— A recent ruling related to trade between the United States and Canada has “significant economic implications” for U.S. dairy producers, according to a spokesperson for Edge Dairy Farmer Cooperative.
Karen Gefvert, director of government affairs for the Green Bay-based co-op, yesterday said a ruling by a dispute settlement panel established under the U.S.-Mexico-Canada Agreement means American dairy producers will continue to miss out on export opportunities in Canadian markets.
As part of an ongoing dispute over trade between the two countries, U.S. trade officials argue Canada is unfairly limiting export opportunities for domestic dairy farmers and processors.
In a panel proceeding established under the USMCA, the U.S. challenged Canada’s dairy tariff rate quota allocation measures, which use a “market-share approach” for determining allocations, a release from the Office of the U.S. Trade Representative shows. In a final decision, two of the three panelists found these measures don’t breach USMCA commitments referenced in the U.S. challenge.
But Gefvert yesterday said Canada’s measures essentially represent a Catch-22 for those seeking to get their products on Canadian supermarket shelves.
“Applicants, to be eligible to export into Canada, must be active in the Canadian food, ag sector at the time of application, and then must remain active during that quota year … So the concern there was, those who want to gain access really can’t, because they’re not already participating in, they’re not already active in the Canadian food sector,” she said.
The panel also reviewed other aspects of the U.S. argument, including how Canada established criteria for different “pools” of applicants, limits on who can apply for and receive the dairy tariff rate quota, and Canada’s process for returning and re-allocating unused quota allocations, Gefvert explained.
She said the U.S. argued Canada’s measures introduce new conditions or limits on eligibility for these lower tariff rates, altering what the United States thought was established in the original agreement.
“This wasn’t the agreement that the U.S. thought that they had been making, and the additional access to dairy markets with our trading partners to the north really didn’t come to fruition as it had intended,” she said.
Canada and Mexico are top two U.S. trading partners for dairy goods, with more than $1 billion in U.S. dairy exports going to Canada last year alone, Gefvert noted. Canada is also the largest export market for goods made in Wisconsin, according to the Wisconsin Economic Development Corp.
“The Canadian marketplace is a substantial market, and the anticipated economic benefits just weren’t realized, unfortunately,” she said. “So that means less ability to export product, which is revenue generation for processors and for dairy farmers … so there are some significant economic implications to this lack of market access.”
In a statement on the panel ruling, Agriculture Secretary Tom Vilsack noted the U.S. won an earlier USMCA case related to Canada’s trade rate quota allocation system.
“Although we are disappointed in the outcome of this second case, we brought this case to refine and expand upon our win in the first case,” he said. “We will continue to voice deep concerns about Canada’s system.”
Meanwhile, U.S. Trade Representative Katherine Tai argued Canada’s policy revisions following the initial U.S. trade dispute win “have still not fixed the problem” for U.S. dairy farmers.
“We will continue to work to address this issue with Canada, and we will not hesitate to use all available tools to enforce our trade agreements and ensure that U.S. workers, farmers, manufacturers, and exporters receive the full benefits of the USMCA,” she said.
Following the ruling — which can’t be appealed, according to Gefvert — the path ahead is up to Tai, she said.
“There are probably a variety of different avenues the United States can take,” Gefvert said. “Probably the biggest would be looking at reopening USMCA, which I think is an incredibly heavy lift, which is probably unlikely. But that’s always on the table.”
See the Edge release: https://www.wisbusiness.com/2023/edge-dairy-farmer-cooperative-disappointed-by-usmca-panel-ruling/
See the USTR release: https://ustr.gov/about-us/policy-offices/press-office/press-releases/2023/november/usmca-panel-releases-canada-dairy-report-biden-harris-administration-will-continue-seeking-full
— Military aid to Ukraine has made a $460 million impact on Wisconsin’s industrial base so far, more than any neighboring state, according to a Department of Defense document.
The document declassified this month gives some insight into the domestic fiscal impact from U.S. military aid to Ukraine and equipment replacement obligations for each state. The news comes less than a year out from the 2024 election as the Biden administration works to show Americans that spending money on helping foreign countries also boosts the economy at home.
While Wisconsin has received less than the $697 million impact in Missouri and $729 million in Ohio, it’s still a major player in the Midwest since it has received a bigger boost than Illinois, Michigan, Iowa, Minnesota and Indiana.
Midwestern state impacts include:
*$420 million in Iowa;
*$380 million in Michigan;
*$273 million in Indiana;
*$70 million in Minnesota; and
*$55 million in Illinois.
Wisconsin-based Oshkosh Defense in March was awarded a joint contract with two other military vehicle manufacturers worth about $2.8 billion for tactical and combat vehicles, according to DoD tables. That contract includes Oshkosh’s heavy and medium tactical vehicle lines.
The U.S. has appropriated $18.9 billion since February 24, 2022, as part of the Ukraine Security Assistance Initiative with less than $1 billion of that remaining uncommitted, according to the document.
The country has also appropriated $25.9 billion to replace equipment drawn down from U.S. stockpiles, with $1.1 billion remaining uncommitted.
See the DoD document:
— Proponents of a bill to offer a tax credit for businesses that operate child care programs for their employees say the measure would help mitigate the state’s workforce shortage.
Co-author Sen. Dan Feyen told the Assembly Ways and Means Committee a lack of child care and high costs have forced Wisconsinites out of the workforce.
“This will help lift the enormous financial burden off the shoulders of these parents while helping businesses retain hardworking employees. This bill will also help businesses recruit talent to our great state,” the Fond du Lac Republican said yesterday.
AB 660 would offer a maximum credit of $100,000 based on several things, including the capital investment to create the program and expenses to run it. The bill was introduced separately from a package of child care bills that Assembly Republicans introduced this summer.
Evan Umpir, Wisconsin Manufacturers & Commerce director of tax, transportation & legal affairs, who spoke in support of the bill, said access to affordable child care can be a barrier for people seeking to enter or return to the workforce.
“While there are many factors that contribute to the labor force participation rate, expanding the overall pool of workers will help alleviate some of the pressures on employers,” Umpir said.
See more at WisPolitics: https://www.wispolitics.com/2023/wed-pm-update-assembly-committee-hears-arguments-on-tax-credit-for-businesses-that-operate-child-care-programs-for-their-workers/
— Wisconsin banks were “in good health” through the third quarter of 2023, according to the Wisconsin Bankers Association.
The industry group yesterday weighed in on the latest figures from the Federal Deposit Insurance Corporation, which show year-over-year lending increased across commercial, residential and farm loan categories.
“The newly released FDIC numbers showed that Wisconsin banks remained on solid footing through the third quarter of 2023,” WBA President and CEO Rose Oswald Poels said in a statement.
Residential loans rose 25.19% over the year and 15.38% over the quarter, the WBA release shows, as homes in Wisconsin sell quickly.
And though commercial lending rose 2.36% over the year, it declined 1.61% over the quarter, “showing waning economic confidence of business owners,” WBA says.
Meanwhile, farm loans rose 10.3% over the year and 7.54% over the quarter.
Still, WBA notes credit quality has weakened due to inflation, interest rate hikes and slower income growth.
See the release: https://www.wisbusiness.com/2023/wisconsin-bankers-association-commentary-on-fdic-q3-2023-numbers/
<br><b><i>Top headlines from the Health Care Report…</b></i>
— The FDA has selected Workflow Services, a health care platform created by Madison-based ImageMoverMD, for a national pharmacy data collection program.
And the Senate Mental Health Committee has approved a bill to give child sexual assault victims more time to consider suing their perpetrators.
<i>For more of the most relevant news on COVID-19, reports on groundbreaking health research in Wisconsin, links to top stories and more, sign up today for the free daily Health Care Report from WisPolitics.com and WisBusiness.com.</i>
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#TOP STORIES#
# Wisconsin should ‘double down’ on affordable housing efforts, governor says
# A new UW engineering building was a ‘slam dunk.’ Politics intervened.
# New tool will get nurses, other health care workers into workforce faster
#TOPICS#
# AGRIBUSINESS
– Wisconsin Cheese Makers Association hosts contest
http://wisconsinagconnection.com/story-state.php?Id=1039&yr=2023
# BANKING
– Associated Bank to close more branches in Wisconsin, Illinois
# CONSTRUCTION
– OSHA fines two Wisconsin construction companies after Lambeau Field carpenter’s death
# EDUCATION
– Exclusive: Facing budget shortfalls, UW System president privately suggested chancellors ‘shift away’ from liberal arts programs at low-income campuses
# ENVIRONMENT
– Hunters kill 17.6 percent fewer deer during the gun deer season
http://wisconsinagconnection.com/story-state.php?Id=1036&yr=2023
– Wisconsin hunters see lowest bear harvest in 15 years
– Wisconsinites observe negotiations at United National Climate Change Conference
– Milwaukee casting foundry must pay $100K for dumping untreated wastewater into the sewage system
# FOOD AND BEVERAGE
– Wisconsin grants aid local food businesses
http://wisconsinagconnection.com/story-state.php?Id=1038&yr=2023
– Breakin’ Bread MKE coming to Water Street as to-go breakfast, lunch spot
– Wauwatosa brewery closes its doors unexpectedly
# HEALTH CARE
– Pilot program would help Wisconsin police connect people in crisis to virtual mental health experts
– Growing number of Wisconsin schools adopting Stop the Bleed kits, but funding still holds some back
– More than 800 ProHealth Care workers transferring to Optum
– Bill would allow Wisconsinites to seek out-of-state mental health services via telehealth
# MEDIA
– Atomix Logistics founder named to Forbes 30 Under 30 list
# REAL ESTATE
– New Land eyes Whitefish Bay’s former Fox-Bay theater for redevelopment
# SMALL BUSINESS
– Arcadia Books in Spring Green closing Jan. 1 for several months
# SPORTS
– Milwaukee pro soccer team launch delayed until 2026
# PRESS RELEASES
<i>See these and other press releases:
https://www.wisbusiness.com/press-releases/ </i>
