Tag: dairy tariff

NMPF Advocates for Industry Needs in Worldwide Trade Talks

Posted on by Theresa Sweeney

NMPF’s active engagement with key administration officials in the lead-up to President Trump’s July 31 executive order establishing a new tariff system has helped create opportunities for dairy as deals across the globe take shape.

The order places reciprocal import tariffs on dozens of countries while maintaining the reciprocal tariff rate at 10% on all others. Several trade framework agreements were also announced prior to the order that may improve market access for U.S. dairy exporters.

The executive order sets country-specific tariff rates ranging from 10% to 41% on a broad set of imports. Several key U.S. trading partners negotiated terms to secure 15%-20% tariff rates under bilateral arrangements, including the EU, Japan, Indonesia, the Philippines, South Korea, the UK and Vietnam. Details on each are slim – with some having been announced solely via social media – yet most reference tariff reductions that would benefit U.S. agricultural exports.

Throughout these discussions, NMPF staff Jaime Castaneda and Shawna Morris, who served as Confidential Agricultural Trade Advisors to USTR and USDA, have provided extensive details and recommendations to U.S. trade negotiators on the importance of maintaining stable access to key export markets, avoiding retaliatory disruptions, reducing tariffs, and resolving nontariff trade barriers in specific markets.

NMPF joined USDEC in praising the framework agreement announced with Indonesia, which notably would eliminate Indonesia’s 5% dairy tariffs in a promising and growing market for U.S. dairy products and seeks to address nontariff barrier concerns with Indonesia’s lengthy facility registration process and threats to the use of common cheese names.

“We are pleased to hear this framework removes roadblocks to trade and will help grow dairy sales in one of the world’s most populous markets,” said Gregg Doud, president and CEO of NMPF, in the statement. “NMPF looks forward to reviewing the details of the agreement and working with the administration to ensure Indonesia upholds its end of the bargain.”

Separate negotiations are underway with countries on which the U.S. first began raising tariff rates: Mexico, Canada and China. Mexico, the largest market for U.S. dairy, received a 90-day reprieve, allowing continued negotiations and uninterrupted trade for the time being. Meanwhile, Canadian exports that are not USMCA-compliant will face a 35% tariff beginning Aug. 2. Negotiations with China to avert a further hike in bilateral tariffs with that country are ongoing, with a looming deadline of Aug. 12.

NMPF Capitalizes on U.S. Tariff Leverage to Advance Dairy

Posted on by Theresa Sweeney

NMPF and the U.S. Dairy Export Council (USDEC) held strategic meetings throughout April to improve access to key foreign markets as the Trump Administration attempts to negotiate new terms with U.S. trading partners following its April 2 reciprocal tariff plan announcement.

  • Taiwan: Executive Vice President for Policy Development & Strategy Jaime Castaneda and Trade Policy Director Tony Rice, together with the California Milk Advisory Board, traveled to Taiwan from March 31 to April 3 for meetings on dairy market access. The group met with Taiwanese trade and agricultural ministry officials, importers, the U.S. and Taiwanese chambers of commerce, among others, to highlight Taiwan’s dairy tariff disparity between the United States and New Zealand and seek prioritization of tariff relief through the newly commenced U.S.-Taiwan trade negotiations.
  • Japan: Castaneda hosted Yoichi Watanabe, Vice Minister of Japan’s Ministry of Agriculture, Forestry and Fisheries on April 14 to discuss U.S. dairy trade priorities in the context of U.S.-Japan negotiations. American dairy exporters secured expanded access for certain products under the U.S.-Japan Phase One Agreement signed in 2019, but NMPF is seeking further tariff elimination and quota expansion for a range of dairy products in the new set of negotiations.
  • Indonesia: Executive Vice President for Trade Policy & Global Affairs Shawna Morris shared U.S. dairy priorities in an April 24 meeting with a member of the Indonesian Parliament and the Senior Vice President of the Indonesian Chamber of Commerce. She also joined NMPF President and CEO Gregg Doud, USDEC President and CEO Krysta Harden and additional USDEC staff in a subsequent meeting with additional Indonesian Chamber of Commerce delegation members on May 2. The conversations focused on NMPF’s goals for tariff reductions and resolving long-standing challenges associated with Indonesia’s dairy facility listing requirements. During that May 2 meeting NMPF and USDEC signed a Memorandum of Understanding with the Indonesian Chamber of Commerce which commits the organizations to work collaboratively to enhance U.S.-Indonesia trade relationships, including through the use of U.S. dairy products to meet Indonesia’s growing dairy needs.

Castaneda and Morris continue to communicate U.S. dairy trade priorities with the administration as cleared confidential advisors to ensure tariff and nontariff barriers to dairy trade are prioritized in the ongoing negotiations.