Trade Update
Any company exporting products, whether ingredients or finished goods, understands that to be an international player, one must master the rules of the game.
The thing is, the rules often change. From trade
agreements (or the lack thereof) to technical sales barriers, there are a
host of issues that merit constant evaluation. “It’s absolutely
essential that if we are going to be working with international partners
that we understand what’s going on. They expect you to have a good
understanding of what’s going on,” says Gwen Bargetzi, director
of marketing for Hilmar Ingredients, Hilmar, Calif.
Industry organizations like the U.S. Dairy Export
Council, International Dairy Foods Association and Dairy Management Inc.
(DMI), among others, work many ends of trade issues, helping U.S.-based
dairy companies understand and deal with standards, regulations and
agreements. Those groups also work extensively with U.S. trade
representatives and government officials on efforts that ultimately benefit
American producers.
Breaking just before press time was news of the
collapse of World Trade Organization (WTO) Doha round talks in mid-summer,
which resulted in a continued lack of progress on market-access issues and
domestic subsidies. IDFA released a statement expressing disappointment in
the stalled talks and reiterating its support for the U.S. government
position requiring increased market access. IDFA also called on
Congress to extend the Trade Promotion Authority (TPA).
Those in the dairy industry also are working to
removed technical barriers to trade by playing a role in international
standards organizations like the Codex Alimentarius Communication. USDEC
and others also are pooling their efforts to ensure the openness and
fairness of markets by working through wrinkles in agreements like DR-CAFTA
and NAFTA and to strengthen relationships with trade partners.
According to Clay Hough, senior vice president and
general counsel for IDFA, the industry’s collective efforts have an
overriding goal. “The bottom line in what we are trying to do is to
make trade more frictionless and transparent and create a level playing
field out there where the built-in U.S. advantage in dairy can be brought
to bear,” he says. “We can compete with anybody, and you add
that to our infrastructure, logistics and state-of-the-art processing, and
you have a winning combination. In the right international trading
environment, that makes the U.S. a premier dairy exporting
platform.”
And what about other issues that affect trade, such as
the charged political atmosphere right now, with worldwide tensions at a
high over conflicts ranging in the Mideast and long-range missile testing
in North Korea? “Fortunately, as long as there isn’t war
disrupting commerce, the geopolitical aspects of U.S. products
haven’t been an issue,” Suber says. “People may not
always like the U.S. government policy, but it has nothing to do with how
they perceive U.S. dairy products.”
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