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.
