Japan’s Trade Actions May Hinder U.S. Dairy Exports: Industry Group

May 17, 2018

Chicago- Japan's support measures for the domestic cheese industry and its new trade pacts may hinder U.S. dairy exports to the Asian country, a U.S. industry group said Wednesday.

The International Dairy Foods Association expressed concern over the impacts of Japan's economic partnership agreement with the European Union and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP, forged by Japan and 10 other countries after the United States withdrew from the original TPP.

The group explained that these proposed trade agreements would lower tariffs on imported cheese.

"Increases in Japan's domestic production, as well as trade agreements that create room for more imported non-U.S. cheeses, will certainly change the landscape for U.S. products in the Japanese market," Beth Hughes, IDFA director of international affairs, said in a statement.

Hughes also said the IDFA has repeatedly stressed to the U.S. administration and Congress that trade agreements with markets in the Asia-Pacific region are "critically important" to the continued growth of the U.S. dairy industry and are "necessary" to allow U.S. dairy farmers to maintain market access when these countries enter new pacts.

Japan is the fourth largest market for U.S. dairy products, representing sales of more than 290 million dollars in 2017, according to the IDFA. Jiji Press