Japan trade agreement is a priority for the dairy industry

[caption id="attachment_1724" align="aligncenter" width="1014"] File Picture[/caption] GFMM desk:  The continued success of the U.S. dairy industry relies on stable export opportunities to markets abroad, and Japan represents a major opportunity to expand growth. In an effort organized by the National Milk Producers Federation and the U.S. Dairy Export Council, 70 dairy companies, farmer-owned cooperatives and associations sent a letter Monday to the U.S. Trade Representative ambassador and the U.S. secretary of agriculture asking the U.S. government to capitalize on the conclusion of Japan’s national elections and quickly finalize a strong trade deal with Japan in order to secure critical market access for the domestic dairy industry. The U.S. exported $270 million in dairy products to Japan in 2018, and there is room for further growth. However, without a strong U.S.-Japan trade agreement, half of U.S. dairy sales to Japan will be wrested by competitors, mounting to a toll of $5.4 billion in lost export sales when Japan’s trade deal with the European Union and the Comprehensive & Progressive Agreement for Trans- Pacific Partnership (CPTPP) are fully phased in, the industries noted in a joint press release. “With the recent conclusion of Japan’s national elections, the next several months will be critical, and on behalf of America’s dairy industry, we urge the USTR to move quickly to secure an agreement that builds upon the best dairy components of the CPTPP and Japan-EU agreements. Without that, our industry stands to lose $1.3 billion in exports over a decade, costing dairy farmers $1.7 billion in farm income,” the letter stated. For more… -SZK