Firstly, you've missed out a key caveat word: "might be the most important part". Secondly, the article states "US regulatory and trade policy", so in fact two issues, not just the one of regulation that you've claimed. Thirdly, to read further, it rapidly becomes clear what the author really means is the trade policy, not regulation. So you've misrepresented the article.
And then further problems: the reason it settles on trade policy is because the article is actually about trade policy, not baby formula. Seriously, trade policy is I reckon about a third or more of the article's text. Baby formula is just a vehicle to transport the "lesson" that the headline wants us to learn: specifically, that trade protectionism is bad. So what this is, is an opinion piece by a dilettante journalist of no particular expertise on baby formula shortages who is grinding an axe about trade policy. As a result, even if you had correctly interpreted the article, it would be of very little weight anyway.