Baja California Halts Imports of U.S. Milk

Baja California halted imports of U.S. milk after Mexican stores were found selling the milk without proper permits during a routine inspection last month. To meet import requirements, Mexican retailers must first buy milk available from local producers, said David Meling, director of Baja California’s state dairy department. The Mexican state claims U.S. milk producers are “dumping” milk on the Mexican market at lower prices than it sells for in the U.S., Meling said. Local dairy producers are in the process of filing a dumping complaint with Mexico’s secretary of commerce, he said. The spat is one of several disputes that have flared between the U.S. and Mexico since the North American Free Trade Agreement took effect in 1994. At issue is whether Mexican and U.S. state laws, which favor local companies, are superseded by international regulations under NAFTA.