But Japan is the world`s second-largest importer of cheese and bought nearly $US 1.3 billion of cheese in 2018. However, other dairy products are not included in the new agreement, such as butter and condensed milk, and have had better access to the Japanese market under the TTP. Health and safety standards are much more protectionist than tariffs. Tariffs are just a trade tax. A health and safety standard can lead to a ban on trade. The chapter on these under the US-Mexico-Canada Agreement (USMCA) is excellent, but it necessarily relies on the WTO and most of the disputes that US agriculture will need in the future would be more useful if they were filed in Geneva. The National Milk Producers Federation (NMPF), based in Arlington, Virginia, develops and implements policies that promote the well-being of American dairy farmers and the cooperatives they own together. Members of NMPF cooperatives produce most of the U.S. milk supply, making NMPF the voice of nearly 32,000 milk producers on Capitol Hill and to government authorities. For more information about NMPF`s activities, see www.nmpf.org. Under the agreement, Japan will immediately eliminate its 8.5% tariff on lactose and lactose syrup and its 2.9% tariff on milk albummine, which contains whey protein, often used in protein-rich food supplements. Imports of U.S. lactose and lactose syrup and dairy albummine from Japan exceeded 72 million $US in 2018.
In addition, as part of its WTO quota, Japan will launch a new global tender of 750 tonnes for milk powder containing 35% or more protein. The United States and Japan will meet again this year to begin new negotiations for a broader trade agreement. Overall, the digital deal is in line with the new agreement between the United States, Mexico and Canada, which is seen as a TPP upgrade on digital economy issues. Japanese Prime Minister Abe said it reflects the U.S. ally`s status with Japan when it comes to establishing quality open internet rules for the world. While early reports indicate that this agreement does not fully achieve the same tariff reductions as those negotiated under the abandoned Trans-Pacific Partnership or the EU-Japan agreement, it should bring these benefits for cheese and whey – two of our largest milk exports to Japan – said Michael, head of the International Dairy Foods Association (IDFA). Import duties on cheese and whey will be phased out. Other U.S. dairy products, such as butter and skimmed-milk powder, will continue to have access to the Japanese market under the WTO MQs. When the U.S. pulled out, it left more room for brands like Anchor or Australia`s Western Star.
However, Japan refused to allow the US access to TPP-wide quotas in the bilateral agreement. European Union brands gained similar access in a trade deal between Japan and the EU, launched in February. The U.S. Trade Representative`s office said the deal gives U.S. farmers the same advantage as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), countries that sell to Japan. The CPTPP succeeds the Trans-Pacific Partnership. The U.S. dairy industry is very pleased to see that the U.S. and Japan have reached an agreement that will reduce tariffs on U.S. exports of certain food and agricultural products to Japan`s growing market, said.
„If we hadn`t done anything, U.S. dairy would remain less competitive in a global market where Japan has trade deals with competitors such as the EU, New Zealand and Australia.“ The U.S. exported $270 million in dairy products to Japan in 2018, with room for continued growth. Without an agreement that addresses market access inequalities for the United States. Competitors through Japan`s agreement with the European Union (EU) and 11 other countries through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a 2019 study by the U.S. Dairy Export Council (USDEC), found that the U.S. was at risk of losing $1.3 billion in exports over a decade, costing dairy farmers $1.7 billion in farm income.