The Office of the U.S. Trade Representative (USTR) currently is considering India's and Indonesia’s eligibility under the U.S. Generalized System of Preferences (GSP) program, which eliminates U.S. duties on thousands of products for 120 countries and territories. In comments submitted last week, IDFA asked the USTR to review the significant barriers to U.S. dairy exports that Indonesia and India have erected when considering their participation in the GSP program and whether to provide opportunities for them to export more dairy products into the United States.
IDFA outlined several barriers to trade in the two countries to demonstrate that they do not currently allow sufficient access to their markets. This equitable market access is the main criteria for accepting countries into the GSP program, and IDFA believes the countries do not meet that necessary criteria.
IDFA believes India has the potential to be a substantial market for U.S. dairy products. The association said India effectively prohibits U.S. dairy from entering the country with restrictive import procedures and tariffs as high as 46 percent on dairy products. India currently requires imported milk and dairy products to be derived from dairy cows that have eaten only vegetarian feed.
Read IDFA’s comments on India here.
Indonesia has been an important market for U.S. dairy products. In 2017, the U.S. shipped $133 million worth of dairy products, mostly in the form of milk powders. The country recently put policies in place to support domestic producers and restrict imports, and they are inconsistent with World Trade Organization rules, IDFA said.
Read IDFA’s comments on Indonesia here.
For more information, contact Beth Hughes, IDFA director of international affairs at email@example.com.