On behalf of America’s dairy producers and processors, the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) are urging Congress to pass the U.S.-Peru Trade Promotion Agreement. The House of Representatives is scheduled to vote on the trade deal this week and Senate action also is anticipated before the end of the year. 

“This agreement will help further expand U.S. dairy exports, which have reached a new record level in each of the past five years,” said Jaime Castaneda, NMPF senior vice president and USDEC senior policy advisor. 

The agreement provides a combination of some immediate market openings, coupled with gradual transition periods to ultimately open trade between the U.S. and Peru. Upon implementation of the FTA, the U.S. dairy industry will gain immediate open access for whey and lactose, as well as tariff-free access for sizable amounts of cheese and skim milk powder, among other important dairy products. 

U.S. exporters anticipate achieving additional market access in Peru as tariffs are ultimately phased out completely by the seventeenth year of the FTA.  These expanded export opportunities are expected to help grow a market that totaled $12 million in U.S. dairy exports last year. The anticipated benefit from additional exports of cheese, whey, skim milk powder, and other dairy products will average approximately $100 million a year over the first several years of the agreement.

Castaneda added, “The U.S. dairy industry has consistently supported trade agreements such as this one that provide a net benefit for U.S. dairy producers and the industry as a whole. Since this FTA very clearly fits that bill, NMPF and USDEC very much look forward to its passage by the House and Senate so that our industry can begin to enjoy these benefits.”