{ "id": "R40839", "type": "CRS Report", "typeId": "REPORTS", "number": "R40839", "active": false, "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department", "versions": [ { "source": "EveryCRSReport.com", "id": 355492, "date": "2010-01-12", "retrieved": "2016-04-07T02:04:13.148675", "title": "Proposed Import Restrictions on Milk Protein Concentrates (MPCs)", "summary": "Low farm milk prices and declining dairy sector income in 2009 renewed congressional interest in imposing new import barriers on milk protein concentrates (MPCs), which generally include casein, the main protein found in milk, and caseinates, a soluble form of casein. To limit U.S. imports of MPCs, the Milk Import Tariff Equity Act was introduced in the Senate (S. 1542) on July 30, 2009, and in the House (H.R. 3674) on September 29, 2009. Advocates of stricter import controls on MPCs say they would prevent the unlimited importation of milk protein, which would encourage the use of domestically produced protein and raise milk prices for dairy farmers. Opponents, including dairy product manufacturers, respond that the prospective move would increase their costs and result in higher retail food prices. MPCs are used in a variety of food products (e.g., infant formula, processed cheese products, and specialty sports and medical nutrition products), animal feed, and industrial products. \nCurrently, U.S. imports of MPCs are assessed very low or no tariffs while many other dairy product imports are restricted by tariff-rate quotas (TRQs), which impose low import duties on quantities inside a quota while quantities above the quota are charged higher duty rates. During most of the last decade, total imports of MPCs have hovered around 150,000 metric tons or less. Imports fill a gap in limited domestic production. \nUntil 1995, imports of almost all dairy products (butter, cheese, and dry milk) were subject to import quotas, which were established under Section 22 of the Agricultural Adjustment Act of 1933 to prevent imports from interfering with USDA domestic support programs. Dairy products that were not covered by section 22 quotas included casein, caseinates, whey, and soft-ripened cow\u2019s milk cheese (e.g., brie). The 1995 Uruguay Round Agreement on Agriculture converted section 22 quotas (including dairy product quotas) into TRQs. Since MPCs and casein imports had not been restricted under section 22, they were not subject to TRQs. \nThe proposed bills in the 111th Congress, which are similar to previously introduced legislation, would establish two separate TRQs for (1) MPCs with a protein concentration of 40% to 90%, and (2) the combined imports of three products: milk protein concentrate (90% protein), casein, and caseinates. Based on recent trade data, more than half the annual trade in MPCs and casein/caseinates would be affected by the new, higher duties. \nUnder World Trade Organization (WTO) rules for any new U.S. restrictions on imports, enactment of the proposed legislation likely would entail the United States\u2019 entering into compensation negotiations with WTO member countries that are major suppliers of MPCs to the U.S. market. The amount of compensation for which the United States might be liable would be on based on WTO formulas, recent trade data, and bilateral negotiations with principal suppliers. \nFarm-level impacts of new TRQs depend on whether dairy product prices are below or above federal price support levels. If below, farm milk prices would likely not be affected because they would already be supported above market-clearing levels, and trade restrictions would simply limit government purchases of dairy products under the price support program. If above, farm prices would likely increase to the extent that product is withheld from the market. Based on recent trade data, this quantity is estimated to represent about 0.7% of U.S. milk production. The pace of USDA dairy product purchases slowed considerably in late summer 2009, leaving open the question of whether imposing TRQs on MPCs would have affected farm prices at that time. Market prices for dairy products have since moved above support levels.", "type": "CRS Report", "typeId": "REPORTS", "active": false, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R40839", "sha1": "8b7091540c8b1fb9e2b1b271c68c7fa2a477c650", "filename": "files/20100112_R40839_8b7091540c8b1fb9e2b1b271c68c7fa2a477c650.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R40839", "sha1": "6fab6b42461f7d85167122e7f6efe076f848b785", "filename": "files/20100112_R40839_6fab6b42461f7d85167122e7f6efe076f848b785.pdf", "images": null } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc820959/", "id": "R40839_2009Sep30", "date": "2009-09-30", "retrieved": "2016-03-19T13:57:26", "title": "Proposed Import Restrictions on Milk Protein Concentrates (MPCs)", "summary": "Low farm milk prices and declining dairy sector income in 2009 have renewed congressional interest in imposing new import barriers on milk protein concentrates (MPCs), which generally include casein, the main protein found in milk, and caseinates, a soluble form of casein. This report examines proposed import restrictions and potential trade policy implications.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20090930_R40839_3e0470cd88f2c748ffa69aee6378412387b9876a.pdf" }, { "format": "HTML", "filename": "files/20090930_R40839_3e0470cd88f2c748ffa69aee6378412387b9876a.html" } ], "topics": [ { "source": "LIV", "id": "Dairy products", "name": "Dairy products" }, { "source": "LIV", "id": "Proteins", "name": "Proteins" }, { "source": "LIV", "id": "Trade", "name": "Trade" } ] } ], "topics": [ "Foreign Affairs" ] }