The U.S. dairy industry has scored a significant trade win ($128 million in U.S. exports in 2024) after Colombia officially ended its investigation into U.S. milk powder imports and confirmed that no additional tariffs or countervailing duties will be imposed. The decision preserves long-standing market access for American exporters and reinforces the importance of fair and transparent enforcement of trade agreements.
Colombia’s Ministry of Commerce, Industry and Tourism formally dismissed the case on December 30, 2025, concluding that accusations of unfair subsidies and harm to local dairy producers were not supported by evidence.
The investigation began in 2024, when Colombian authorities launched a Subsidies and Countervailing Measures inquiry following complaints that U.S. milk powder imports were allegedly subsidized and damaging Colombia’s domestic dairy industry. Such investigations can lead to trade penalties or tariffs meant to offset supposed unfair advantages.
After reviewing the data and methodology, Colombian regulators determined that the claims failed to meet the threshold required to justify trade restrictions. In short, the evidence did not demonstrate the harm Colombia’s dairy sector had alleged.
Working closely with U.S. government officials, member companies and cooperatives, and Colombian industry partners, the National Milk Producers Federation and U.S. Dairy Export Council demonstrated that the Colombian government’s methodology was flawed, that assumed benefits to the U.S. dairy industry were miscalculated, and that no evidence of harm to Colombia’s domestic dairy sector could be substantiated.
“The U.S. dairy industry secured hard-won access to the Colombian market more than a decade ago, and as of this year tariffs have now fully phased out,” said Gregg Doud, president and CEO of NMPF. “Attempts to restrict U.S. access through bogus claims and misused trade tools set a dangerous precedent not only for dairy exports but for all U.S. trade. We commend the U.S. government and our members for working with us to coordinate a strong, credible defense and to send a clear message that efforts to evade trade agreement commitments will not be tolerated.”
“U.S. dairy producers and processors expect our trading partners to honor their market access commitments,” said Krysta Harden, president and CEO of USDEC. “USDEC thanks the U.S. government in Washington and Bogota, as well as our members, for their support in presenting overwhelming evidence to rebut Colombia’s politically driven investigation. We welcome Colombia’s decision to abandon the case and maintain zero-tariff access for U.S. dairy exports in this important market.”
Jaime Castaneda, executive vice president for policy development and strategy for NMPF and USDEC, testified on behalf of the U.S. dairy industry at an October 2024 hearing, clarifying how U.S. Department of Agriculture programs work to refute the unfounded claims by Colombian producers.
Colombia initially imposed preliminary countervailing duties of 4.86 percent on U.S. milk powder imports but chose not to extend them when the temporary measures expired in January 2025, following the sustained campaign coordinated by NMPF and USDEC.
