U.S.-India Dairy Dispute Heats Up at WTO: A Clash of Standards and Trade

By Dairy Dimension Staff | April 2, 2025

New Delhi – The global dairy trade landscape is facing fresh turbulence as the United States has lodged a formal concern with the World Trade Organization (WTO) over India’s stringent import requirements for milk and milk products. In a submission filed this Monday, Washington argued that India’s integrated veterinary health certificate mandate could be unfairly sidelining American dairy exports, creating an uneven playing field that favors domestic producers. For an industry already navigating complex supply chains and shifting consumer demands, this dispute underscores the delicate balance between food safety and free trade.

India’s policy, which requires all imported dairy to carry a certificate verifying the absence of drugs, antibiotics, pesticides, and heavy metal residues, isn’t new to the rulebook. Certified by the exporting country’s authority, this document is a cornerstone of India’s efforts to ensure consumer safety in a nation where dairy isn’t just a product—it’s a cultural lifeline. With millions of small-scale farmers and a booming domestic market, India’s regulators have long prioritized stringent oversight. But the U.S. sees a problem: these requirements, it claims, impose a heavier burden on foreign suppliers than on local producers, potentially clashing with WTO principles of national treatment.

“We reiterate our concern that the new certificate requirements appear to unfairly disadvantage U.S. dairy versus domestically produced products,” the U.S. submission stated. Washington isn’t pulling punches, urging India to rethink its approach and adopt measures that achieve public health goals without choking trade flows. Calling India a “valued trade partner,” the U.S. is pushing for a solution that keeps American cheese, milk powder, and butter competitive in one of the world’s biggest dairy markets.

A Tale of Two Markets

At the heart of this spat lies a classic trade tension: how to reconcile national priorities with global commerce. For India, the certificate isn’t just red tape—it’s a shield against past scandals involving contaminated imports and a way to bolster confidence in a dairy sector that supports rural livelihoods. The U.S., meanwhile, views it as a non-tariff barrier that could lock its producers out of a lucrative market, especially as American dairy looks to expand its global footprint amid domestic oversupply.

The stakes are high. India’s dairy consumption is soaring, driven by population growth and rising demand for everything from paneer to yogurt. For U.S. exporters, cracking this market could mean billions in revenue. But the certification process adds costs and complexity, potentially pricing American products out of reach compared to local alternatives. “It’s not just about safety—it’s about fairness,” one U.S. trade official told Dairy Dimension anonymously. “We’re asking India to meet us halfway.”

What’s Next for Dairy Trade?

The WTO filing isn’t a declaration of war—it’s a call for dialogue. The U.S. wants India to explore less restrictive alternatives, perhaps streamlined testing protocols or mutual recognition of standards, that could satisfy both sides. India, for its part, hasn’t yet responded publicly, but industry insiders expectರ

As this unfolds, the dispute raises big questions for the dairy world. Can global trade rules keep pace with national safety priorities? And what does this mean for the future of U.S.-India dairy relations? For now, all eyes are on New Delhi and Geneva, where the next chapter of this transatlantic dairy drama will play out.