World Trade Organization
IDFA believes that multilateral negotiations in the World Trade Organization (WTO) provide the best and most important opportunity to strengthen international trade rules to remove artificial advantages or protections and truly open markets for U.S. dairy products and dairy-containing foods.
Although regional and bilateral free trade agreements can also provide important trade-opening opportunities (as we have seen from the Mexican commitments under NAFTA), until distortions from European dairy subsidies are removed from the international marketplace, competition from subsidized dairy products will continue to disadvantage U.S. dairy foods exporters. The most effective means of eliminating the trade distortions of EU subsidies is through WTO reforms.
Since its inception, IDFA has stood by the Doha Development Round as a means to foster growth in international trade and increase opportunities for U.S. dairy exporters. There were two failed multilateral trade rounds (ministerials) in 2008, both aiming to agree on framework packages (modalities). The issues preventing a convergence of these modalities were the same in July and December, with the pressure points being special safeguard mechanisms (SSMs), Non-Agricultural Market Access (NAMA) and agriculture.
A successful Doha deal in 2009 would boost confidence for investors and business owners alike that open markets and free-flowing trade will remain intact. IDFA continues to support Doha and hopes for a successful completion in the future.
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March 9, 2009
Obama Outlines Trade Policy Agenda in USTR Address
