IDFA applauds U.S.-EU trade agreement
Courtesy of IDFA.
The International Dairy Foods Association (IDFA) celebrated the European Union’s (EU) implementation of the U.S.-EU trade agreement, which it says opens new export opportunities for U.S. dairy.
"Among other wins, the agreement establishes tariff-rate quotas (TRQs) which will allow tariff-free access for up to 10,000 metric tons (mt) of U.S. cheese, and 10,000 mt of other U.S. dairy products including yogurt, ice cream, dairy spreads and lactose. The EU also agreed to reduce tariffs on up to 50,000 mt of U.S. infant formula and related products and streamline dairy certification requirements as part of this deal. U.S. exporters will be able to take advantage of these TRQs immediately, as the entirety of quota volumes is now available at the reduced tariff rate through June 30, 202," IDFA stated.
Importantly, the agreement also includes commitments that the EU’s sustainability regulations, including the Corporate Sustainability Due Diligence Directive, do not unfairly restrict EU-U.S. trade or burden U.S. companies.
Further, the Office of the U.S. Trade Representative (USTR) recently publicized the advancement of a framework agreement with Uzbekistan that is set to include agricultural products in scope. While the outcomes are not yet fully negotiated and the inclusion of dairy is therefore not guaranteed, IDFA supports USTR efforts to pursue agreements with emerging markets that are critical to the diversification and protection of U.S. dairy supply chains.
Michael Dykes, D.V.M., president and CEO of IDFA, released the following statement:
“The EU’s advancement of its commitments is an important win for U.S. dairy, opening new export opportunities in the European market and marking the first measurable progress in transatlantic dairy trade in 10 years. Advancing negotiations with Uzbekistan is no less remarkable, creating one of the first measurable steps towards a meaningful trade relationship with that market in decades.
“IDFA greatly appreciates the Trump administration’s leadership in prioritizing meaningful market access for U.S. dairy exporters in trade negotiations. This agreement is the first of 18 new agreements containing dairy market access-enhancing provisions to be implemented, and we look forward to continuing to work with the administration to ensure U.S. dairy exporters can compete, grow and reach more consumers around the world.”
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