President Obama Points to Export Growth in State of Union Address

In his State of the Union address last week, President Obama announced an initiative that emphasizes exports as a means for job creation and economic growth. Linking U.S. exports to prosperity, the president declared a two-percent increase in the Commerce Department's International Trade Administration budget of $534 million to launch the export drive.

IDFA has always emphasized exporting as an excellent long-term strategy for U.S. dairy processors. U.S. dairy exports grew significantly over the past few years, and they represent an important market for U.S. dairy products, accounting for more than 10 percent of domestic milk production in 2008. Although data through November of 2009 indicate that dairy volume exports for the year will be down considerably, they still will be higher than any year prior to 2007. Looking ahead, IDFA expects dairy export growth to regain momentum in 2010 as importing nations continue to emerge from the global recession.

"We are very encouraged by the president's emphasis on exports during his State of the Union address," said Katie Sparrow, IDFA manager of international affairs. "Although there was no direct mention of taking the three outstanding trade agreements with Colombia, Panama and South Korea to Congress, mentioning the importance of exports is a huge step for this administration's trade policy."

IDFA will continue to monitor the administration's export initiatives and keep members informed. 

FDA Seeks Comments from Processors Exporting to Chile

The Food and Drug Administration is seeking comments on the way U.S. dairy processors currently are allowed to export products to Chile. IDFA encourages members with an interest in exporting to Chile to review the request in the Federal Register and to respond.

According to the U.S.-Chile Free Trade Agreement (FTA), Chile recognizes FDA as the U.S. food safety authority and accepts the U.S. regulatory system for dairy inspections. Currently, FDA maintains a list of dairy processors that are eligible to export to this market, and Chile has indicated that it will not accept products from companies that are not on the list.

FDA is seeking comment on guidance it published in 2005 to explain what information firms should submit and what criteria FDA uses to determine eligibility for placement on the list.

The FTA, implemented in 2004, allowed the United States and Chile to eliminate immediately tariffs on 87 percent of bilateral trade and committed to establishing duty-free trade for all products within a maximum of 12 years.