After announcing its intent to enter talks with the United Kingdom (UK) on a bilateral trade pact last fall, the Office of the U.S. Trade Representative (USTR) requested industry input to develop negotiating objectives. In comments filed this week with the USTR, IDFA said these objectives must cover all dairy products and focus on eliminating current barriers that the U.S. dairy industry faces, including high tariffs and other non-tariff barriers such as restrictions on common cheese names.
The UK has the potential to be a large export market for the U.S. dairy industry because it is a net importer of dairy products. In 2017, the UK imported $3.1 billion worth of dairy products. Of that, only $8.8 million was from the United States, while $3 billion was from the European Union (EU).
“Assuming tariffs are eliminated, there are opportunities for the U.S. to export larger amounts of cheese, butter, whey and milk powders as well as cream, yogurt, buttermilk, and condensed milk,” IDFA said.
Geographical Indications
IDFA urged USTR to oppose any effort by the UK to adopt geographical indications (GIs) regulations from the European Union (EU), that ban companies from using cheese names that are commonly used internationally and in the U.S. market.
“The EU’s desire to turn back the clock and claw back names that had already become generic is an outrage to the many U.S. companies – small and large –that helped build the markets for these products, as well as to the industry as a whole through the incorrect suggestion that our use of these terms has not been legitimate,” IDFA told USTR.
As the UK prepares to leave the EU, IDFA said, it is critical the region not adopt any EU regulations that curtail U.S. dairy exports to the region.
“Otherwise, any benefit or gains made in market access will not be realized,” IDFA said.
Technical Barriers
IDFA also called for strong sanitary and phytosanitary (SPS) provisions to be incorporated in the bilateral pact with the UK to ensure the U.S. dairy industry can compete on a level playing field. IDFA asked USTR to use the provisions included in the U.S.-Mexico-Canada Agreement (USMCA) as examples of ways to address technical barriers to trade.
Next Steps
Under Trade Promotion Authority (TPA), the administration will consult with congressional committees of jurisdiction and then publish a detailed summary of negotiating objectives on USTR’s website. TPA mandates that USTR must publish these objectives at least 30 days before official negotiations begin.
For more information, contact Beth Hughes, IDFA senior director of international affairs, at bhughes@idfa.org.