U.S. Dairy Industry Gains Expanded access to Southeast Asian Markets
The U.S. dairy industry is celebrating new trade agreements and frameworks poised to significantly boost exports to key Southeast Asian nations. Recent developments include finalized agreements with Malaysia and Cambodia, alongside framework agreements with Thailand and Vietnam, all aimed at strengthening the position of U.S.dairy in the region’s rapidly growing markets.
“With these new agreements,the administration has delivered big wins for America’s dairy farmers,” stated Gregg doud,president and CEO of the National Milk Producers Federation (NMPF).”Agreements like those struck with Malaysia and Cambodia will ensure we have fair access to Southeast Asia’s fast-growing markets. That’s essential so that our farmers and cooperatives can keep doing what they do best – producing top-quality milk and dairy products for families here at home and around the world. We look forward to working closely with the administration as they turn the new frameworks with Vietnam and Thailand into strong deals as well.”
krysta Harden, president and CEO of the U.S. Dairy Export Council (USDEC), echoed this sentiment, saying, “These agreements with Malaysia and Cambodia open new doors for U.S. dairy exports in two dynamic markets and the frameworks with Vietnam and thailand offer the promise of more to come. By removing tariffs, addressing nontariff trade barriers and cutting red tape, the agreements will make it easier for U.S. suppliers to deliver the high-quality dairy ingredients and foods that Southeast Asia’s growing consumers demand. USDEC appreciates the great work of the U.S. negotiating team in securing these crucial results.”
The agreement with Malaysia eliminates virtually all remaining dairy tariffs and includes provisions for state-of-the-art protections for common cheese names, assurances regarding dairy certification, recognition of the U.S. dairy safety system, streamlined facility registration requirements, and a commitment to basing regulations on sound science.
Similarly, the agreement with Cambodia provides for the full elimination of all tariffs on U.S. dairy exports and prohibits the establishment or maintenance of facility listing requirements for U.S. dairy products.
The framework agreements with thailand and Vietnam outline provisions for future negotiations, with the potential for similar positive outcomes regarding tariffs and nontariff barriers.
These markets are already significant for U.S. dairy exports. Last year, Malaysia, Vietnam, and Thailand accounted for $118 million, $127 million, and $87 million in sales, respectively. While U.S. dairy exports to Cambodia totaled $3 million in the same period, the agreement signals potential for growth.
These U.S. agreements are particularly critically important given ongoing trade negotiations between the EU and Malaysia and Thailand, and also existing free trade agreements between all three nations – Malaysia, Vietnam, and Thailand – and New Zealand and Australia, ensuring U.S. competitiveness in the region.