USDA released its biannual World Markets and Trade Report for the dairy industry on July 19, reconfirming the need for more U.S. free trade agreements, such as USMCA, between major trading partners. In the cheese market, forecasts for U.S. exporters have improved due to the recent removal of Mexican retaliatory tariffs. U.S. exports of cheese in 2019 are expected to increase by 8 percent over 2018.

 

However, the European Union (EU) remains a tough competitor, especially with the passage of recent free trade agreements with Japan, the third largest export market for cheese, and Mexico. While the EU’s free trade agreements with Japan and Mexico will gradually phase out import tariffs, U.S. importers will continue to face a 30 percent import tariff until a trade agreement is achieved.

 

“Free trade agreements that open markets and lower trade barriers are crucial to growing U.S. dairy exports,” said Beth Hughes, IDFA’s senior director of international affairs. “With more than 95 percent of our potential customers living outside our borders, expanding access to international markets is essential for our future success.”

 

For more information, contact Beth Hughes.