govmt is getting an airplane full of baby formula from switzerland.
Corporate greed got a major plant shut down.We apparently don't have the technology or know-how to produce our own "stuff." We are too dependent upon other countries for our own existence.
The U.S. imposes high tariffs—up to 17.5%—on imported baby formula. Formula is also subject to a mechanism called a tariff-rate quota, where additional duties can be placed on goods once total imports pass a certain level.
As part of the United States-Mexico-Canada Agreement (USMCA), negotiated by President Donald Trump to replace the North America Free Trade Agreement in July 2020, Canada agreed to impose an additional surcharge of $3/kg if the total volume of its global formula exports—not just exports to the U.S.—broke a certain threshold. That threshold is currently set at 40,480 metric tons for the current "dairy year" of August 1 2021 to July 31 2022.
The new duties seemingly closed off Canada as a source of infant formula. The U.S. imported a grand total of zero tons of baby formula from its nothern neighbor in 2021, yet has shipped tons of domestic formula into Canada. According to the U.S. Department of Agriculture, U.S.-manufactured infant formula made up the largest component of U.S. dairy exports to Canada in 2021, accounting for 22% of all northbound dairy trade.
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