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U.S. Dairy Celebrates Market Access Advances in Southeast Asia

CONTACTS:

Paul Rogers, USDEC
progers@usdec.org

ARLINGTON, VA – The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) praised today’s announcement of new trade agreements with Malaysia and Cambodia and new trade agreement frameworks with Thailand and Vietnam, strengthening U.S. dairy’s position in Southeast Asia’s high-growth market.

“These agreements with Malaysia and Cambodia open new doors for U.S. dairy exports in two dynamic markets and the frameworks with Vietnam and Thailand offer the promise of more to come,” said Krysta Harden, president and CEO of USDEC. “By removing tariffs, addressing nontariff trade barriers and cutting red tape, the agreements will make it easier for U.S. suppliers to deliver the high-quality dairy ingredients and foods that Southeast Asia’s growing consumers demand. USDEC appreciates the great work of the U.S. negotiating team in securing these important results.”

“With these new agreements, the Administration has delivered big wins for America’s dairy farmers,” said Gregg Doud, president and CEO of NMPF. “Agreements like those struck with Malaysia and Cambodia will ensure we have fair access to Southeast Asia’s fast-growing markets. That’s essential so that our farmers and cooperatives can keep doing what they do best – producing top-quality milk and dairy products for families here at home and around the world. We look forward to working closely with the Administration as they turn the new frameworks with Vietnam and Thailand into strong deals as well."

The agreement with Malaysia will deliver meaningful gains for U.S. dairy exporters including the elimination of virtually all remaining dairy tariffs, state of the art protections for common cheese names, assurances regarding dairy certification, recognition of the U.S. dairy safety system, streamlining of facility registration requirements, and reinforcement of the vital importance of basing regulations on sound science.

The agreement with Cambodia delivers similar results extending to also include a full elimination of all tariffs on U.S. dairy exports and a prohibition on the establishment or maintenance of a facility listing requirement for U.S. dairy products.

The trade framework agreements with Thailand and Vietnam provide outlines of the provisions with each to come, both offering the promise of similarly strong outcomes on tariffs and nontariff barriers impacting dairy exporters.

Malaysia, Vietnam and Thailand are already among the top twenty export destinations for U.S. dairy products, account for $118 million, $127 million and $87 million respectively in sales last year. The new deal comes as the EU advances negotiations on free trade agreements this year with Malaysia and Thailand while Vietnam entered the sixth year of its FTA with the EU this year. All three also have long-standing deals with New Zealand and Australia. In light of this, the U.S. agreements are particularly important to maintaining U.S. competitiveness in this key region. While U.S. dairy exports to Cambodia totaled only $3 million last year, it too offers potential for further growth.

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The U.S. Dairy Export Council is a non-profit, independent membership organization that represents the global trade interests of U.S. dairy producers, proprietary processors and cooperatives, ingredient suppliers and export traders. Its mission is to enhance U.S. global competitiveness and assist the U.S. industry to increase its global dairy ingredient sales and exports of U.S. dairy products. USDEC accomplishes this through programs in market development that build global demand for U.S. dairy products, resolve market access barriers and advance industry trade policy goals. USDEC is supported by staff across the United States and overseas in Mexico, South America, Asia, Middle East and Europe. The U.S. Dairy Export Council prohibits discrimination on the basis of age, disability, national origin, race, color, religion, creed, gender, sexual orientation, political beliefs, marital status, military status, and arrest or conviction record. www.usdec.org.