Politics, Business & Culture in the Americas

Mexican Milk Industry to File Dumping Charges Against U.S.

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Mexican milk producers will go to the World Trade Organization (WTO) to demand that the U.S. raises the price of milk it exports to Mexico. Alvaro González Muñoz, the head of the Frente Nacional de Productores y Consumidores de Leche—a national organization of dairy industry stakeholders—said that thousands of Mexican milk producers have gone out of business in recent years because of the low prices of American milk, a result of U.S. government subsidies.

In Mexico, milk producers cannot afford to sell their product for less than five pesos ($0.38) per liter, but the price of U.S. milk imports range from 2.80 to 3.20 pesos ($0.21 to $0.24) per liter. For González Muñoz, bad economic times means that the minimum price of milk should not be lower than 5.50 pesos ($0.41) per liter for the milk industry to survive. The head of the Mexican milk industry admits that bringing the case before the WTO is going to be a long and complicated process, but sees it as necessary since other industries are being affected as well.

Tags: Mexico, Milk Industry, U.S., World Trade Organization
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