ODD GUESTS SHOW AT DAIRY TALKS
WASHINGTON — When a Maine congressman called together Capitol Hill insiders to talk about how to protect the U.S. dairy industry in a new trans-Pacific trade agreement, he included an unlikely participant in the discussions: the country that's trying to beat those protections.
Two representatives from the New Zealand Embassy took part in the March 8 meeting, surprising some participants who figured on the invitation-only event as a frank discussion of U.S. strategy going into the talks. Discussions among the eight countries started in March, and the Obama administration is pushing hard for a deal even as U.S. industries jockey for favorable treatment.
Rep. Michael H. Michaud, D-Maine, sponsored the meeting, which included panelists from the U.S. dairy, catfish and sugar industries —all of which fear a free trade agreement with New Zealand and other Pacific countries could undermine their business by attracting imports to the United States while offering little access to those countries in return.
Foreign officials' attendance at Capitol Hill events is not unusual, as most of the United States's trading partners have delegations here that pay attention to Congress. Indeed, the New Zealand Embassy is on Mr. Michaud's e-mail distribution list, a New Zealand official said, and was alerted to the event, which attracted about 30 people to a House office building.
But the congressman's own description of the briefing in an invitation to fellow lawmakers suggested that topics might come up that could compromise the U.S. position if described in detail to parties on the other side of the trans-Pacific trading table. The New Zealand officials, without identifying themselves, asked pointed questions of a panelist who spoke critically about that country's aggressive dairy export policy, one participant said.
In describing the event in the invitation, Mr. Michaud wrote, "Panelists will speak about the possible consequences of opening our markets to participants in the TPP talks and make recommendations for how the U.S. can protect these industries as the talks advance."
The main lobbying organization for U.S. farmers, the National Milk Producers Federation, did not attend, a lobbyist for the organization said, although it is active on dairy trade policy. The NMPF and other farm organizations generally agree that the U.S. dairy industry would not win much from a free trade agreement with New Zealand, which exports about 95 percent of its milk products, the nation's Agriculture Ministry reported.
Groups representing dairy farmers have cautioned against such a deal, as they did against a free trade agreement with Australia during the George W. Bush administration. The trade agreement that the U.S. finally reached with Australia addressed dairy products in a limited fashion and delayed some provisions to soften their impact.
Like Australia, New Zealand's dairy industry is structured favorably for exporting, and officials there strongly oppose opening their countries' smaller dairy markets to U.S. milk exports. Milk production costs in the country are below world averages, making New Zealand dairy products attractive to foreign buyers — except that trade barriers restrict what and how much is economically available.
On the other hand, New Zealand officials say their dairy industry — strongly dependent on pastures, unlike U.S. farms — can grow only so much and does not have the capacity to flood the United States with dairy goods.
A spokesman for Mr. Michaud did not return repeated requests for comment. Mr. Michaud has been critical of trade agreements and sponsored legislation to review such agreements based on countries' labor practices and human rights records.
In the invitation for the briefing, Mr. Michaud wrote, "The TPP negotiations will be President Obama's first trade initiative, and the first trade agreement negotiated without fast-track authority since the U.S.-Jordan Free Trade Agreement, which was ratified in 2001. As such, they represent a unique opportunity for members of Congress to shape U.S. trade policy so that it protects American industries, increases American exports and creates American jobs."
Lawmakers, including Rep. William L. Owens, D-Plattsburgh, meet with U.S. Trade Ambassador Ron Kirk today to discuss the trade talks. Mr. Owens urged Mr. Kirk in January to consider possible negative effects on the dairy industry.
