Trade and Regulatory Issues
U.S. and Canada Reach Deal to Update NAFTA
Avoiding a potential crisis, the U.S. and Canada reached a deal late on Sunday, September 30 to join Mexico in updating the 1994 NAFTA accord. One of the highlights of the agreement included expanding access to Canada’s protected diary market for the U.S. dairy industry. Canada will eliminate its so-called Class 7 milk pricing system and prevent Canada’s system from extending outside its borders, while market access for the U.S. will exceed Canada’s concessions in Trans-Pacific Partnership talks.
China to Impose Tariffs on Nearly All US Dairy Imports
In September, China’s finance ministry announced that it will impose retaliatory tariffs on nearly $60 billion worth of U.S. imports in reaction to the Trump administration’s plans to place 10-percent duties on another $200 billion in Chinese goods. Starting Sept. 24, the Chinese targeted U.S. lactose, infant formulas, ice cream, chocolate milk and whey proteins and isolates. The move means that nearly all U.S. dairy products exported to the country will face additional import taxes.
President Trump threatened to retaliate again if China goes through with the additional taxes on agriculture products. In a tweet he said, “There will be great and fast economic retaliation against China if our farmers, ranchers and/or industrial workers are targeted!”
The administration plans to bump its latest 10-percent tariffs up to 25-percent in January.
FDA Seeking Public Feedback on Planted-based Beverage Labels
In late September, the Food and Drug Administration (FDA) announced that it is seeking public comments on how consumers use plant-based beverages, as well as how they understand terms like “milk” or “cheese” when the terms are used to label products made from soy, peas or nuts, for example. MDFA is working with our IDFA partners to gather feedback on an appropriate response.
US and Japan to Enter Trade Pact Talks
President Trump and Japanese Prime Minister Abe announced plans to begin trade negotiations for a bilateral agreement. Agriculture will be included in the talks, but the leaders said they will cap market access at levels negotiated in the Trans-Pacific Partnership, which included concessions for tariffs on American butter, cheese, lactose, milk powder, whipped cream and whey. The Japanese market is U.S. dairy’s fourth-largest, representing sales of more than $290 million last year.
Turkey Reopens Market to US Dairy
Turkey has reopened its market to U.S. dairy products, following a lapse in market access for nearly three years when Turkish and U.S. officials negotiated to renew a certificate that Turkey requires for imports. Turkey currently imports around $200 million each year in specialty products such as cheese, butter, infant formula and lactose. Under the new certificate, the United States can export products such as butter, cheese, ice cream, milk and cream, whey and milk powders, and yogurt.
MDFA consults with IDFA, FMI, and NGA for article information
Avoiding a potential crisis, the U.S. and Canada reached a deal late on Sunday, September 30 to join Mexico in updating the 1994 NAFTA accord. One of the highlights of the agreement included expanding access to Canada’s protected diary market for the U.S. dairy industry. Canada will eliminate its so-called Class 7 milk pricing system and prevent Canada’s system from extending outside its borders, while market access for the U.S. will exceed Canada’s concessions in Trans-Pacific Partnership talks.
China to Impose Tariffs on Nearly All US Dairy Imports
In September, China’s finance ministry announced that it will impose retaliatory tariffs on nearly $60 billion worth of U.S. imports in reaction to the Trump administration’s plans to place 10-percent duties on another $200 billion in Chinese goods. Starting Sept. 24, the Chinese targeted U.S. lactose, infant formulas, ice cream, chocolate milk and whey proteins and isolates. The move means that nearly all U.S. dairy products exported to the country will face additional import taxes.
President Trump threatened to retaliate again if China goes through with the additional taxes on agriculture products. In a tweet he said, “There will be great and fast economic retaliation against China if our farmers, ranchers and/or industrial workers are targeted!”
The administration plans to bump its latest 10-percent tariffs up to 25-percent in January.
FDA Seeking Public Feedback on Planted-based Beverage Labels
In late September, the Food and Drug Administration (FDA) announced that it is seeking public comments on how consumers use plant-based beverages, as well as how they understand terms like “milk” or “cheese” when the terms are used to label products made from soy, peas or nuts, for example. MDFA is working with our IDFA partners to gather feedback on an appropriate response.
US and Japan to Enter Trade Pact Talks
President Trump and Japanese Prime Minister Abe announced plans to begin trade negotiations for a bilateral agreement. Agriculture will be included in the talks, but the leaders said they will cap market access at levels negotiated in the Trans-Pacific Partnership, which included concessions for tariffs on American butter, cheese, lactose, milk powder, whipped cream and whey. The Japanese market is U.S. dairy’s fourth-largest, representing sales of more than $290 million last year.
Turkey Reopens Market to US Dairy
Turkey has reopened its market to U.S. dairy products, following a lapse in market access for nearly three years when Turkish and U.S. officials negotiated to renew a certificate that Turkey requires for imports. Turkey currently imports around $200 million each year in specialty products such as cheese, butter, infant formula and lactose. Under the new certificate, the United States can export products such as butter, cheese, ice cream, milk and cream, whey and milk powders, and yogurt.
MDFA consults with IDFA, FMI, and NGA for article information