By Jamie Martin
A newly signed reciprocal trade and investment agreement between the United States and Argentina is expected to strengthen dairy trade and open new export opportunities. The agreement was welcomed by leading dairy organizations representing U.S. farmers and exporters.
As part of the deal, Argentina agreed to eliminate tariffs on several U.S. dairy products that previously reached as high as 28 percent. Products covered include milk powders, lactose, dairy proteins, and other key dairy ingredients used in food manufacturing. The agreement also establishes a 1,000 metric ton quota for certain U.S. cheeses, allowing greater access to the Argentine market.
The agreement also focuses on reducing non-tariff barriers that can make trade difficult. Argentina committed to avoiding new registration requirements for U.S. dairy processing facilities. In addition, it agreed to protect 39 common cheese names that are widely used by U.S. producers, helping ensure continued use of familiar product labels.
“The commitments secured in the U.S.-Argentina reciprocal trade deal bring new, real opportunities for our dairy exports to South America,” said Krysta Harden, president and CEO of USDEC. “USDEC appreciates USTR’s hard work in securing agreements that lower tariffs and meaningfully address nontariff barriers, particularly those to protect common cheese names. We look forward to building our market presence in Argentina as the agreement is implemented.”
The protection of common food names is seen as especially important as international competition over product labeling increases. Ensuring fair use of these names helps prevent unnecessary restrictions on U.S. exports and supports consumer clarity.
“Trade deals like this one bring dairy farmers promise for the future,” said Gregg Doud, president and CEO of NMPF. “Dairy farms operate 365 days a year, and the U.S. negotiating team is keeping pace to secure new market access. NMPF will continue to work with the Administration as all the reciprocal trade agreements are translated into real results on the ground for our farmers.”
This agreement follows similar trade deals recently reached with other countries in the region. U.S. dairy groups said they will continue working with government officials to ensure these trade commitments lead to real results and continued growth in global dairy markets.
Photo Credit: gettyimages-artiemedvedev
Categories: National