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USMCA is foundational to success of U.S. dairy exporters, industry

Michael Dykes

Michael Dykes, president and CEO of the International Dairy Foods Association, contributes this column bimonthly for Cheese Market News®.

For the U.S. dairy industry, few relationships matter more than those with our North American neighbors. In 2025, the United States exported $3.88 billion in dairy products to Canada and Mexico — accounting for 41% of all U.S. dairy exports. Those numbers tell a clear story: the United States-Mexico-Canada Agreement (USMCA) is not just another trade deal. It is foundational to the success of U.S. dairy exporters, processors and farmers.

Since its implementation, USMCA has helped drive record export performance, with total U.S. dairy exports reaching approximately $9.5 billion last year. Mexico remains our largest and most reliable trading partner for dairy, with deep, mutually beneficial ties that support farmers, processors and consumers on both sides of the border. Canada, while more limited in scale, represents a high-value market where improved access was negotiated — and where the promise of USMCA has yet to be fully realized.

In 2026, the United States, Mexico and Canada will undertake the agreement’s first formal “joint review” — a required check-in built into USMCA every six years. This process is designed to assess how the agreement is functioning, determine whether it should continue in force and identify areas where implementation is falling short. By July 1, the three countries must assess how the agreement is functioning and formally signal whether they intend to extend it. If they do not, it triggers a series of annual reviews that could ultimately lead to the agreement’s expiration — if a country does not withdraw altogether. In short, this is a pivotal moment to reinforce what is working and fix what is not.

For dairy, the priorities are clear:

• First, preserve the agreement that has delivered real value for American agriculture and provided stability for North American trade. At a time of global uncertainty, USMCA supports jobs in rural communities, strengthens integrated supply chains and reinforces the competitiveness of U.S. producers. That matters even more in today’s environment. Dairy supply chains across North America are deeply integrated, from farm to processing to distribution. USMCA has provided the certainty needed to make long-term investments, expand production and meet growing demand across the region. That stability is not a luxury — it is essential.

• Second, ensure that all parties live up to their commitments. Trade agreements only deliver value when the agreed upon terms are fully implemented and enforced. In Canada, that has not always been the case.

Canada’s administration of tariff-rate quotas (TRQs) has restricted the access that U.S. dairy exporters were promised under the agreement. It also continues to distort protein pricing through its price classes, limiting opportunities for U.S. producers and shaping competition beyond Canada’s borders.

The strength of USMCA is most visible in the U.S.-Mexico dairy relationship. Growing demand for high-quality, nutritious dairy products has supported steady growth in trade, benefiting producers and consumers in both countries. While no trading relationship is without its challenges, continued engagement and cooperation have reinforced a partnership grounded in shared economic interests. That kind of collaboration — supported by clear rules and mutual accountability — is exactly what USMCA was designed to achieve.

Trade benefits extend well beyond exports. USMCA supports jobs in rural communities by enabling U.S. dairy farmers and processors to serve customers across North America. It strengthens integrated supply chains that allow products to move efficiently across borders, improving resilience and lowering costs. And it reinforces the competitiveness of U.S. producers and processors who depend on predictable market access to plan, invest and grow.

This year’s USMCA review is not about reopening the agreement or introducing uncertainty; it is about preserving a framework that works — and ensuring it is implemented as all parties agreed.

USMCA has been a cornerstone of growth for American dairy. With a focused review that ensures implementation and enforcement, it can continue to deliver even greater opportunity in the years ahead.

CMN

The views expressed by CMN’s guest columnists are their own opinions and do not necessarily reflect those of Cheese Market News®.

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