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Trade News Update: New Study helps to Assess TPP

May 25, 2016

Trade News is a periodic update that provides a concise compilation of current trade happenings and their impact on the dairy industry. This week's column by Beth Hughes, IDFA director of international affairs, discusses new research on the impact of the Trans-Pacific Partnership and industry activity that highlights the importance of TPP to each U.S. state economy. It also reviews U.S. Department of Agriculture’s new allowance of raw sugar imports and new opportunities for dairy exports to Pakistan.

Assessing the Trans Pacific Partnership

IDFA last week released a statement in response to a newly released International Trade Commission (ITC) report on the Trans-Pacific Partnership.

“We applaud the long-awaited release of the ITC's investigation, which is an important step forward in assessing the benefits of the TPP,” said Clay Hough, IDFA senior group vice president and general counsel. “While we still have concerns about implementation and enforcement on a number of critical issues that will determine how the agreement is likely to work in practice,” he said, “we are encouraged by the positive ITC report, and are hopeful that Senate and House leaders will approve the agreement this year.”

Read the full statement.

States Unite for TPP

In letters sent to Congress yesterday, IDFA joined more than 400 companies, business associations and organizations in urging Congress to pass the Trans-Pacific Partnership.

As a part of a state-by-state initiative, the U.S. Coalition for TPP, of which IDFA is a member, is sending congressmen and women letters that highlight the benefits of trade and the importance of the agreement to each U.S. state economy.

This week, 10 letters were sent to respective congressional delegations in California, Florida, Georgia, Illinois, New York, Oregon, South Carolina, Texas, Virginia and Washington. Each had more than 100 signatures from manufacturers, services providers, farmers and ranchers.

IDFA has signed on a letters for every state where it has members. These will be sent to congressional delegations in additional states in the coming weeks.

Read the 10 letters here.

Raw Sugar Imports

Last week, the U.S. Department of Agriculture raised the tariff-rate quotas for raw sugar, which will result in a 200,000 ton increase of the U.S. supply. The increase meets the 2014 Farm Bill requirement to maintain an adequate sugar supply for an uncertain market, and will allow for additional imports of raw cane-sugar to enter the U.S.

IDFA's ice cream, flavored milk and yogurt members, about 200 companies in total, use sugar in their products and are affected by domestic supply levels and prices. Ice cream and other dairy products consume approximately 11 percent of industrial sugar deliveries.

The Sweetener Users Association, of which IDFA is a member, released a statement welcoming the agency’s action, calling it a “much-needed increase.”

Pakistan Dairy Trade

To highlight opportunities for American companies to expand or strengthen their market in Pakistan, the U.S.-Pakistan Business Council will host its annual conference in New York City, June 2 and 3.

The conference could be a valuable educational and networking opportunity for any dairy company looking to export to Pakistan.

In addition presentations aimed at the agricultural sector, the conference will feature sessions on making the proper steps necessary to import into Pakistan and taking advantage of the country’s Generalized System of Preferences, as well as keynote addresses from Bruce Andrews, deputy secretary of commerce and Fred Hochberg, the chairman of U.S. Export-Import Bank.

This is not an IDFA sponsored event.

For more information, contact Hughes at

Dairy Delivers