The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) praised yesterday’s announcement of new trade frameworks with Argentina, Ecuador, El Salvador and Guatemala which collectively position U.S. dairy exporters for further gains in the Western Hemisphere.
“U.S. dairy exports to U.S.-Central America-Dominican Republic Free Trade Agreement partners have almost doubled over the past five years. The frameworks the administration has negotiated with Guatemala and El Salvador position our exporters to really capitalize on that landscape during the first duty-free year of dairy trade under the CAFTA-DR trade agreement by ensuring that nontariff trade barriers don’t slow our progress,” said Gregg Doud, president and CEO of NMPF. “Non-tariff barriers tend to sprout up like weeds when tariffs disappear, which is why these commitments are so important in this region. The nontariff commitments announced with Argentina and Ecuador also may help resolve multiple long-standing issues in those markets. Dairy farmers look forward to seeing the details on them as well as on the tariff commitments the deals include.”
“The U.S. Dairy Export Council has been keenly focused on maximizing export opportunities into our FTA partner markets so that we make the most of markets where we have a level playing field against other competitors. Central America has been a key part of that strategy of growing our exports of cheese and other dairy products and creating partnerships that have been crucial to the economic wellbeing of our dairy farmers, which is why these frameworks with Guatemala and El Salvador are particularly welcome,” said Krysta Harden, president and CEO of USDEC. “Ecuador has the potential to be a good market, but too often nontariff barriers have impeded access to this and other markets where opportunities exist. The commitments the administration has secured on these topics in Latin America are crucial to avoiding those problems. Dairy exporters and farmers hope that the Argentina and Ecuador deals will deliver predictable access and also include additional market access, especially for dairy ingredients and cheese.”
The U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) has delivered important gains for U.S. dairy exporters in Central America. This year marked the point at which all CAFTA-DR dairy tariffs were finally eliminated. Under the frameworks announced today, El Salvador and Guatemala will provide valuable new nontariff commitments to allow U.S. dairy exporters to fully capitalize on those FTA opportunities including expediting product registration requirements for U.S. exports, removing apostille requirements, committing to continue accepting currently-agreed dairy certificate, ensuring that market access for U.S. agricultural exporters will not be restricted due to the mere use of certain cheese terms, and assurances of transparency and fairness regarding geographical indications.
The framework with Argentina included commitments to not require facility registration for U.S. dairy products, not restrict market access for products that use certain cheese terms, and provide preferential market access for “a wide range of [U.S.] agricultural products”.
The framework with Ecuador included commitments to reform its import licensing and facility registration systems for food and agricultural products, not restrict market access due to the use of certain cheese terms, and “reduce or eliminate tariffs…[for] certain agricultural products [and] establish tariff-rate quotas on a number of other agricultural goods”.
U.S. dairy exports last year to Guatemala and El Salvador totaled $127 million and $50 million respectively. U.S. dairy sales to Ecuador and Argentina have to date been much more limited due in key part to the lack of a bilateral trade agreement with either partner; exports amounted to only $6 million and $3 million respectively last year.
