Study: Competitor trade agreements could threaten U.S. dairy exports to Japan
Without swift, effective action to secure a strong trade treaty with Japan that exceeds Japan’s agreements with other countries/regions, the United States could see market share drop in half over the next decade.
A study released on Jan. 30 by the Arlington, Va.-based U.S. Dairy Export Council (USDEC) projects new trade agreements between Japan and other countries will put U.S. dairy exports at a competitive disadvantage, resulting in lost U.S. sales of $5.4 billion over 21 years.
The Japanese dairy market, the fourth-largest export destination for U.S. dairy exports, is expected to continue to grow in years to come. With a level playing field, the United States could roughly double its market share, USDEC said, citing the study, which was conducted by Tokyo-based Meros Consulting. However, without swift and effective action by the United States to secure a strong trade treaty with Japan that exceeds Japan’s agreements with Australia, New Zealand and the European Union, the United States could see its market share drop in half over the next decade.