European Dairy Sector Reacts to the EU–U.S. Tariff Framework Agreement
Source: dairynews.today
The European Dairy Association responds to the newly published EU-U.S. Framework Agreement, welcoming greater stability in transatlantic trade.
The European Dairy Association (EDA) acknowledges the publication of the legal texts of the new EU-U.S. Framework Agreement. This arrangement promises increased predictability by negating the threat of escalating tariffs and finalizing the issue of past surcharges, a positive outcome for stability in the transatlantic dairy trade. The agreement introduces significant market openings from the EU side, notably approving 20,000 tonnes of tariff-free tariff rate quotas (TRQs) for U.S. dairy products, emphasizing a noteworthy commitment of new market access beyond existing WTO quotas exclusively for U.S. origin. However, this development raises concerns about potential future demands from other trading partners for similar treatment under WTO non-discrimination rules, necessitating a careful assessment by the EU and its member states on the agreement's long-term implications for their dairy industry.
For context, in the EU–Mercosur negotiations, merely 10,000 tonnes of cheese access was obtained for the EU after protracted talks, while the same volume is now offered to U.S. exporters instantly, highlighting the substantial nature of this new agreement. On the U.S. side, a tariff ceiling of 15% grants more certainty compared to potential higher duties, although some EU dairy products entering under lower rates might face increased costs due to high U.S. MFN duties on out-of-quota exports, impacting European exporters’ competitiveness. The EDA is committed to a constructive dialogue as an EDA delegation plans to visit Washington by September's end to converse with U.S. industry stakeholders about advancing a balanced approach that ensures equitable opportunities on both fronts.
EDA’s Secretary General, Alexander Anton, remarked, “This agreement reshapes the framework for transatlantic dairy trade. While predictability is achieved to some extent, challenges persist for the dairy industry on both sides. Implementing this carefully, acknowledging commitments in multilateral and bilateral contexts, remains crucial.” The EDA aims to continue its collaboration with European institutions and international partners to ensure the agreement is executed in a manner that supports competitiveness, sustainability, and resilience of the European dairy sector.
For context, in the EU–Mercosur negotiations, merely 10,000 tonnes of cheese access was obtained for the EU after protracted talks, while the same volume is now offered to U.S. exporters instantly, highlighting the substantial nature of this new agreement. On the U.S. side, a tariff ceiling of 15% grants more certainty compared to potential higher duties, although some EU dairy products entering under lower rates might face increased costs due to high U.S. MFN duties on out-of-quota exports, impacting European exporters’ competitiveness. The EDA is committed to a constructive dialogue as an EDA delegation plans to visit Washington by September's end to converse with U.S. industry stakeholders about advancing a balanced approach that ensures equitable opportunities on both fronts.
EDA’s Secretary General, Alexander Anton, remarked, “This agreement reshapes the framework for transatlantic dairy trade. While predictability is achieved to some extent, challenges persist for the dairy industry on both sides. Implementing this carefully, acknowledging commitments in multilateral and bilateral contexts, remains crucial.” The EDA aims to continue its collaboration with European institutions and international partners to ensure the agreement is executed in a manner that supports competitiveness, sustainability, and resilience of the European dairy sector.
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