Tag: Indo-Pacific Economic Framework

U.S. Dairy Industry Welcomes IPEF Launch and Taiwan Trade Proposal

Posted on by Theresa Sweeney

NMPF trade staff spent much of June encouraging the Biden Administration’s new Indo-Pacific Economic Framework (IPEF) to move forward while pushing it to go even further toward ensuring more-open markets for U.S. dairy producers.

IPEF encapsulates a regional trade agenda focused on advancing supply chain resilience, sustainability, economic growth, and competitiveness. Depending on its outcomes, IPEF’s effects on U.S. dairy exporters could range from tiny to quite notable. The collection of interested countries includes seven of the United States’ top ten dairy export markets, but the framework announced May 23 does not address tariff reductions

NMPF and USDEC have broadcasted these concerns to the administration during a Farmers for Free Trade virtual townhall, comments, and direct communications to trade negotiators. The organizations also have been leading drivers behind bipartisan Congressional engagement on the issue, supporting the work of scores of Members as they press the administration to prioritize agriculture in IPEF negotiations and outline examples of both tariff and nontariff opportunities.

An agreement that does not directly tackle tariffs might still deliver meaningful benefits for dairy, and NMPF and USDEC continue to advocate for inclusion of specific nontariff items that could help improve trade flows. These include protecting the use of common cheese names and cutting red tape by streamlining import requirements. Also, NMPF and USDEC note that tariff reductions could be possible under IPEF should the U.S. Trade Representative secure unilateral foreign tariff reductions that benefit all World Trade Organization (WTO) members, including the United States. Such a reduction would provide U.S. exporters with greater parity with competitors that have already secured comprehensive tariff agreements throughout the region.

The U.S.-Taiwan Initiative on 21st-Century Trade announced June 1 faces similar hurdles. Taiwan was the 12th largest market for U.S. dairy exports last year, buying $140 million of U.S. dairy products, primarily higher-value exports such as fluid milk and cheese.

While NMPF welcomes all initiatives aimed at increasing trade, the Taiwan proposal does not contain plans to reduce tariffs. NMPF believes stronger economic ties must include additional trade opportunities for the dairy sector and will continue to press for these policies at every opportunity.

NMPF Pursues, Protects Dairy Market Access

Posted on by Theresa Sweeney

NMPF and the U.S. Dairy Export Council (USDEC) submitted joint comments to the U.S. Trade Representative’s Office on April 11 asking it to place a high priority on tariff cuts and nontariff barrier removals through the Indo-Pacific Economic Framework (IPEF).

While the administration still hesitates to pursue comprehensive free trade agreements, the framework, which is focused on defining shared objectives around trade facilitation, standards, supply chain resiliency, sustainability, and other common interests in the Indo-Pacific region, presents a potential opportunity to take one step forward on access terms in the region. NMPF in the comments urged that the Biden Administration pursue comprehensive trade agreements to establish lasting tariff and nontariff trade barrier reductions. While acknowledging that the economic framework will not be that kind of agreement, the comments make the case that it could still reduce or eliminate barriers to trade and suggest numerous areas for potential progress.

NMPF and USDEC worked closely with Congressional offices to bolster that message through a March 30 House of Representatives letter to U.S. Trade Representative Katherine Tai and Secretary of Agriculture Tom Vilsack urging the administration to prioritize U.S. food and agriculture in any IPEF negotiations. The bipartisan letter, led by Reps. Jimmy Panetta (D-CA) and Jodey Arrington (R-TX), and signed by 85 other members of Congress, called on the administration to use the Indo-Pacific negotiations to “include efforts to reduce tariffs on U.S. agricultural exports,” to establish regulatory reforms that would benefit U.S. dairy and others in American agriculture, and more.

NMPF also is continuing to safeguard free trade in Latin America, where growing anti-import sentiment from domestic agricultural industries is contributing to a proliferation of potential new market access barriers.

Panama formally petitioned the United States in March 16 to renegotiate several of the agricultural market access provisions in the U.S.-Panama Trade Promotion Agreement. In response, NMPF and USDEC, working together with the Corn Refiners Association, initiated an April 14 letter co-signed by fifteen other agricultural organizations to Ambassador Tai and Secretary Vilsack urging them to preserve the agricultural market access terms of the trade deal and ensure Panama honors its trade obligations. The letter states that modifying an already-implemented trade deal would set an “alarming precedent” and urges the administration to stay the course on FTA implementation.

Dairy Priorities Emphasized in Congressional Letter on Indo-Pacific Economic Framework

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) today praised a bipartisan letter from 87 members of the U.S. House of Representatives who called on U.S. Trade Representative Katherine Tai and Agriculture Secretary Tom Vilsack, “to make agriculture a priority in the Indo-Pacific Economic Framework” (IPEF).

The letter was led by Representatives Jimmy Panetta (D-CA) and Jodey Arrington (R-TX), together with Jim Costa (D-CA), Dusty Johnson (R-SD), Ron Kind (D-WI) and Randy Feenstra (R-IA). The members of Congress called on the administration to use IPEF to address barriers to U.S. agricultural exports, create mutually agreed-upon regulatory reforms that would benefit U.S. dairy and others in American agriculture, “include efforts to reduce tariffs on U.S. agricultural exports” and more.

“These members of Congress have their fingers on the pulse of the agricultural economy, which in turn supports so much of rural America,” said Krysta Harden, president and CEO of USDEC. “Dairy farmers and manufacturers need a framework that lives up to the recommendations laid out in this letter, ensuring America’s dairy industry – from farmers to workers to manufacturers – are able to compete fairly and efficiently in fast-growing markets across Asia and the Pacific.”

“America’s dairy farmers and their cooperatives are strongly reliant on exports, which is why it’s essential that the Biden administration focus on tackling global barriers that stand in the way of our high-quality products,” said Jim Mulhern, president and CEO of NMPF. “Consumers around the world are hungry for dairy and our industry is eager to better meet that demand, unburdened by trade barriers and tariffs. But for that to happen, we need effective economic engagement with key trading partners, just as these members of Congress envision.”

The Congressional Research Service reported in February that the U.S. has held exploratory talks on IPEF with Japan, Malaysia, Singapore, and South Korea, although no determination has been made on the framework’s participants. Southeast Asia is one of the largest export destinations for U.S. dairy exports and sales to that region grew by 11% last year despite headwinds caused by supply chain issues and tariff disadvantages in key markets. South Korea and Japan round out the top ten markets for U.S. dairy products and saw growth rates of 15% and 17% respectively in 2021, making clear that these markets are priorities for U.S. dairy.

The full letter and list of signatories can be found here.