October 4, 2017

 

 

The US dairy industry has cautioned Japan against favoring the European Union when reviewing a list of geographical indications (GIs) proposed by the EU, or else risk disrupting one of the world's largest consumer marketplaces.

 

In a letter to the Japanese Minister of Agriculture, Forestry and Fisheries, leaders from the US National Milk Producers Federation (NMPF), the US Dairy Export Council (USDEC) and the International Dairy Foods Association (IDFA) said it was imperative that Japan "not overlook the enormous significance of the EU food name list for Japanese consumers and producers, and for your lasting relationships with key international trading partners".

 

The EU is in the final stages of negotiating a free trade agreement with Japan, establishing the rules of commerce for hundreds of food products produced in each region. In the process, the EU, according to the US dairy stakeholders, "is seeking to monopolise a long list of common names under the guise of geographical indications in trade deals with Japan and other nations, including China and Mexico".

 

They claimed that the EU is attempting to restrict generic product names such as parmesan, feta and asiago to products made only by EU producers and that this runs counter to international trade commitments.

 

The Consortium for Common Food Names and US dairy groups have argued that this strategy is intended to deprive US manufacturers of markets that local industries have developed. "The EU's goal of co-opting these terms would limit sales from non-EU companies to benefit European marketers, thereby stifling healthy competition among food producers all over the world", they said.

 

The letter stressed that "this is a critical moment for Japan as your nation prepares to review hundreds of food and beverage terms; the decisions Japan makes will have lasting impact for years to come".

 

Promote healthy trade

 

"We urge you to make sure that the steps you take do not unnecessarily limit healthy trade and competition within your market", the letter further stated.

 

The letter cited Canada's decision to acquiesce to EU pressure, which has negatively affected its producers, consumers and trade partners. The US dairy leaders insisted that Japan can avoid this fate by helping to finalise a list of GIs that does not "encroach on generic names and terms". For example, "Parmigiano Reggiano" is an acceptable geographical term, but the common name "parmesan" is already used by non-EU producers and widely used in Japan.

 

"For the good of our trade relationship, it is imperative that Japan's efficient and transparent GI review process ensures that generic names and terms remain accessible to all," said NMPF President and CEO Jim Mulhern. "We encourage Japanese government officials to continue on this course, and to respect their own laws and international agreements with the United States."

 

"Wholesale acceptance of the EU's proposed GI list would not only unfairly limit the ability of US and other nations' cheesemakers to do business in Japan, it would negatively impact Japanese consumers and cheese producers," said USDEC President and CEO Tom Vilsack. "We urge Japan to consider the confusion, marketplace disruptions and inflated prices that would ensue by restricting common cheese names as the EU desires."

 

Last year American dairy companies shipped $117 million worth of cheese products to Japan, which is the third-largest market for US cheeses, according to IDFA President and CEO Michael Dykes.

 

"We believe that trade agreements should break down barriers, not erect new ones, and we urge Japanese government officials to reject the EU's attempts to block common food names and fair market access for US companies", he said.