New US-EU Trade Deal Boosts American Dairy Exports

The United States and European Union have implemented a new trade agreement that significantly impacts the American dairy sector. The deal grants tariff-free access for up to 10,000 metric tons of U.S. cheese and reduces import duties on 50,000 metric tons of infant formula. This agreement represents the first substantial progress in U.S.-EU dairy trade in over a decade and aims to remove longstanding market access barriers.

The trade deal establishes new tariff-rate quotas (TRQs) allowing tariff-free entry not only for American cheese but also for 10,000 metric tons of other dairy products such as yogurt, ice cream, and dairy spreads. Moreover, the agreement includes commitments from the EU to simplify product certification protocols, easing the export process for U.S. producers.

A key aspect of the agreement addresses non-tariff and regulatory compliance challenges that have historically limited trade. The European Union has pledged not to use its Corporate Sustainability Due Diligence Directive to unfairly restrict trade or impose additional administrative burdens on U.S. agribusinesses, thus providing operational certainty for American dairy processors.

Beyond Europe, the U.S. Trade Representative is also working on a new framework agreement with Uzbekistan, aiming to expand dairy exports to Central Asia. Although specific allocations for dairy are still under negotiation, the International Dairy Foods Association (IDFA) supports these efforts to diversify export markets.

IDFA President and CEO Michael Dykes praised the U.S. administration's trade strategy, which includes 18 new international accords featuring provisions to enhance dairy exports. The current agreement allows American processors to access reduced tariffs immediately through June 30, enabling them to compete in the global market.