New Trade Deals Include Key Dairy Priorities

Following significant engagement from NMPF and the U.S. Dairy Export Council, the United States signed new trade agreements in February with Indonesia, Taiwan, Argentina and Bangladesh that strengthen export opportunities for America’s dairy farmers. These deals secure reliable market access and remove long-standing non-tariff barriers that have limited sales of U.S. dairy products abroad.

The Indonesia, Taiwan and Bangladesh agreements would end tariffs on all U.S. dairy exports, remove and forestall burdensome facility listing requirements, as well as commit trading partners to protecting over three dozen common cheese names like “parmesan” from European monopolization.

The three markets imported $3.6 billion in total dairy products last year, with just 9% coming from the United States. Removing trade barriers will improve U.S. suppliers’ competitiveness in key Asian markets where dairy consumption is growing quickly.

The Indonesia agreement also builds on NMPF’s strong relationship with the Indonesian dairy industry and government, including a memorandum of understanding (MOU) signed last May with the Indonesian Chamber of Commerce and Industry (KADIN) to expand dairy trade and strengthen commercial ties. NMPF and USDEC also forged an MOU with the Dairy Association of Taiwan last September that combines efforts in growing domestic dairy consumption and support a school-milk initiative.

The Argentina agreement comes at a critical moment, as the South America country moves toward implementing the EU-Mercosur trade agreement that would grant EU suppliers greater market access and potentially hand them exclusive use rights for certain common name cheeses. In the U.S.-Argentina deal, NMPF worked to secure increased market access for several key dairy products, commitments to protect generic terms and measures to preempt more nontariff barriers to trade.

As cleared advisors to U.S. trade negotiators, NMPF and USDEC emphasized the importance of securing durable access to these growing markets, helping ensure that U.S. dairy farmers can compete on a level playing field as the European Union continues to pursue aggressive trade agreements worldwide.

NMPF and USDEC have worked with the administration to ensure new opportunities for U.S. dairy exports are included in all nine of the reciprocal trade agreements signed to date and will continue working closely with USTR and U.S. government partners to ensure full implementation. Implementation timing is uncertain. NMPF will work to ensure that Indonesia, Taiwan, Argentina and Bangladesh fully meet their commitments, supporting open, predictable, and growing export markets for U.S. dairy producers.

U.S.–Taiwan Trade Agreement Delivers Major Wins for U.S. Dairy

The National Milk Producers Federation, U.S. Dairy Export Council and the Consortium for Common Food Names commended the signing late yesterday of a landmark trade agreement between the United States and Taiwan that will eliminate tariffs on all U.S. dairy products and preempt nontariff barriers that could otherwise limit the full potential of bilateral dairy trade.

Taiwan is the third-largest fluid milk destination for U.S. exports, and this agreement represents a transformative step forward for the growing market. By securing comprehensive tariff reductions for U.S. dairy products and incorporating meaningful commitments to ensure nontariff measures do not derail trade, the deal positions U.S. dairy suppliers to compete on a level playing field and expand their presence in one of Asia’s most dynamic food markets.

“Taiwan is a trusted partner and a high-value market for U.S. dairy,” Krysta Harden, president and CEO of USDEC, said. “This agreement improves our competitiveness compared to other suppliers and provides assurances that nontariff barriers will not hinder the expansion of U.S. dairy exports. USDEC looks forward to continuing work with the Taiwanese government and the domestic industry to increase dairy consumption and grow the United States’ contribution to supplying Taiwan’s fluid milk and other dairy needs.”

The agreement builds on strong industry-to-industry collaboration between the United States and Taiwan. Last year, NMPF and USDEC representatives traveled to the market to advocate for dairy’s prioritization in the negotiations and deepen engagement with local stakeholders. While there, USDEC and NMPF signed a Memorandum of Understanding (MOU) with the Dairy Association of Taiwan to strengthen market development and information exchange efforts.

“The agreement with Taiwan builds on the incredible momentum we’ve seen from the Administration in securing new trade agreements around the world,” Gregg Doud, president and CEO of NMPF, said. “Each deal to reduce barriers and expand market access strengthens American dairy farms and the communities they support.”

“Taiwan is an important market for the United States, and the commitments to protect common names included in this agreement preempt third countries like the European Union from abusing intellectual property tools to monopolize generic terms and take away U.S. export opportunities,” Jaime Castaneda, executive director of CCFN, said. “We cannot thank Ambassador Greer, Ambassador Callahan and the entire negotiating team enough for prioritizing this issue and ensuring our exporters can continue using the terms known by consumers around the world.”

NMPF, USDEC and CCFN look forward to working closely with U.S. and Taiwanese officials to ensure swift implementation of the agreement and to fully realize its benefits for dairy producers, exporters, and consumers on both sides of the Pacific.