Trade – Making a Difference for Dairy
Global Trade is Vital for the Growth of the U.S. Dairy Industry
Trade has helped the U.S. dairy industry grow markets and create American jobs. U.S. dairy processors have benefited greatly from the free trade agreements (FTAs) the U.S. holds with 20 countries, but the growth that’s still possible is immeasurable.
In 2018, the United States exported almost $5.5 billion worth of dairy, from cheese to whey to ice cream to skim milk powder to everything in between. Every state exports dairy and as such, every state benefits from the jobs that dairy exports create. For every $1 billion worth of dairy exported, 20,000 American jobs are created.
The United States’ current FTA partners represent 55 percent of U.S. dairy exports. Mexico alone represents more than 24 percent of all American exports of dairy. Due to the implementation of the North American Free Trade Agreement (NAFTA), U.S. dairy companies export to Mexico duty-free. But there are many countries where American dairy does not receive such favorable market conditions.
The European Union is working tirelessly to expand their network of agreements with vital U.S. dairy trading partners, while the U.S. is missing opportunities to create new relationships with growing dairy markets. These forces are combining to limit U.S. competitiveness in the global dairy market. The only way to protect and grow the future of American dairy is through the recommitment to current agreements, such as NAFTA, and the creation of new FTAs.
Click on the links below to learn more about free trade, the international trade system, or how to contact your representatives to remind them of trade’s value to dairy.
The International System
Global Tariff Schedules
Section 232 & Section 301