GREEN BAY, Wis. —Edge Dairy Farmer Cooperative, one of the largest dairy cooperatives in the country based on milk, is encouraged by the trade agreement framework between the U.S. and E.U. announced on August 20 as a major step forward in establishing better market access and alignment between the two countries.
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“We are encouraged by the Framework Agreement between the U.S. and the E.U. and what it means for dairy farmers,” Heidi Fischer, Edge board president, stated. “We encourage the finalization of this agreement to provide more market access to this important trade partner.”
The Framework on Reciprocal, Fair and Balanced Trade is the next step in formalizing the initial deal announced in late July. The Framework Agreement outlines commitments in a variety of areas, from market access and non-tariff barriers, to Global deforestation and sustainability.
Key provisions for the Food and Agriculture industry include:
Market Access: The E.U. intends to eliminate tariffs on all U.S. industrial goods and to provide preferential market access for a wide range of U.S. seafood and agricultural goods, including tree nuts, dairy products, fresh and processed fruits and vegetables, processed foods, planting seeds, soybean oil, and pork and bison meat.
In return, the U.S. commits to apply the higher of either the U.S. Most Favored Nation (MFN) tariff rate or a tariff rate of 15%, comprised of the MFN tariff and a reciprocal tariff, on originating goods of the European Union.
Section 232: The U.S. intends to promptly ensure that the tariff rate, comprised of the MFN tariff and the tariff imposed pursuant to Section 232 of the Trade Expansion Act of 1962, applied to EU goods subject to Section 232 actions on pharmaceuticals, semiconductors, and lumber does not exceed 15%. For steel, aluminum, and their derivative products, the E.U. and U.S. are still considering where there may be cooperation.
Non-Tariff Barriers: The U.S. and E.U. commit to work together to address non-tariff barriers affecting trade in food and agricultural products, including streamlining requirements for sanitary certificates for pork and dairy products.
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