An Idaho dairy producer urged lawmakers to strengthen enforcement of the U.S.-Mexico-Canada Agreement (USMCA) during testimony before the Senate Finance Committee on Thursday, emphasizing the deal’s significance to America’s dairy sector.
Ted Vander Schaaf told senators that dependable and enforceable trade agreements are essential for U.S. dairy farmers to compete globally. He noted that the United States exported approximately $9 billion in dairy products in 2025, including a record 559,000 metric tons of cheese through November of last year.
Mexico and Canada remain the industry’s most important foreign markets. Together, the two countries purchased $3.6 billion worth of U.S. dairy products in 2024, representing 44 percent of total U.S. dairy export value. Vander Schaaf said the USMCA plays a central role in maintaining those trade relationships.
However, he argued that Canada has failed to fully honor its commitments under the agreement, weakening its effectiveness for American producers. “A firm basis for the agreement remains Canada upholding their end of the bargain,” Vander Schaaf told the committee.
He called on lawmakers to use the upcoming USMCA review process to address concerns about Canada’s administration of its dairy tariff-rate quota (TRQ) system. According to Vander Schaaf, Canada continues to structure its TRQs in a way that limits U.S. imports by allocating most quota volumes to domestic processors who have little incentive to import dairy products.
At the same time, he said distributors receive only small quota allocations, while retailers, restaurants, and food service operators are excluded altogether.
As a result, Vander Schaaf contended that U.S. dairy farmers have effectively been denied meaningful access to the Canadian market. The USMCA is scheduled for review and possible renewal in July 2026.
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