:. Food Industry News

EU, U.S. Dairy Industry Clash over Import Tax


14/03/2008

Washington, March 13 - The EU complained on Thursday that a proposal in Congress would unfairly tax dairy imports, but the U.S. dairy industry says the step would simply close a loophole and put end to European dairy's free lunch.

Daily News Alerts

European Union officials have singled out a provision in the 2008 farm bill, a massive agriculture law being considered by the U.S. Congress, that would expand a fee on milk, cheese and other dairy products to include dairy imports.

Those fees, equal to 15 cents per 100 lbs of farm milk, are used to fund research and promotion programs that aim to boost dairy sales and farmers' bottom line.

But the EU sees its importers potentially shouldering new costs without, due to current trade patterns and import restrictions, getting much in return.

"It is simply not fair to tax European producers to fund a program that boosts domestic consumption ... when there is very limited access to the U.S. domestic market or, as with milk, effectively no access at all," John Bruton, EU ambassador in Washington, said in a statement.

According to the Agriculture Department, cheese imports from the 27 EU member states added up to $773 million in fiscal 2007; other dairy products were $263 million.

The EU was by far the largest source of U.S. cheese imports last year, but European officials complain that their cheese imports are limited by U.S. quotas.

Diplomats are also raising the specter of litigation at the world trade court, where Washington and Brussels have already fought out a number of epic trade feuds.

"Imposing the assessment would be a clear violation of World Trade Organization rules on equal treatment of agricultural products," Bruton said.

But the U.S. dairy industry disagrees wholeheartedly, pointing to similar levies on imports of beef, potatoes and other goods, which so far have triggered no big trade feuds.

"EU producers and processors have benefited for the last 20 years ... look at how much they export into the United States," said Jaime Castaneda, a senior vice president at the National Milk Producers Federation.

An aide with the House Agriculture Committee said the dairy proposal would not violate world trade rules.

NMPF believes importers must begin pulling their weight alongside U.S. dairy farmers, who spend some $270 million a year on the programs.

NMPF predicts that change would cost world dairy importers under $11 million, which it calls "a drop in the bucket" compared to global dairy imports worth $2.3 billion in 2006.

"The greed and selfishness of some are just deplorable," Castaneda said.

The proposal is found in the House of Representatives' version of the farm bill. Lawmakers are still squabbling over several key aspects to the bill, which is nearly six months behind schedule, and the White House has threatened a veto.



GO   View more articles on this subject


More Alerts from 14/03/2008


Email This Article To A Colleague     Print A Copy Of This Page
 
 
 
 
FLEXNEWS - Business News for the Food Industry

About Us | Contact Us | Terms & Conditions | Privacy Policy
 
Daily News Alerts
Related Items
US Subsidizes Some Dairy Exports, Blames EU Action
Watchdog Raps EU Dairy Deregulation Policy
Britain Turns to Imports as Dairy Farmers Quit
Europe's Farmers Spill Milk to Protest Low Prices
EU Farm Chief Sees Slow Recovery in Dairy Prices
US Dairy Group to Cull More Cows to Aid Milk Price
EU Extends Public Butter Buying, Supports Dairy Mkt
U.S. Group Completes Largest Dairy Cow Buyout
EU Commission to Study Stabilising Dairy Market
EU Hits Back at U.S. Over Dairy Export Subsidy Move

More in Food Industry News
Procter & Gamble Repurchasing Shares, Quiet on...
US Shoppers Going Green Despite Struggling Economy
Wessanen Sells Liberty Richter to World Finer Foods
Cheesecake Factory Sticks to 2010 Forecast
Brenntag Changes 2.5 Bln Euro Loan to Allow IPO
European Commission Refers Greece to ECJ over Unjustified...
JM Smucker's Quarterly Net Income Increases 172%
Ferrero, Hershey Would Likely Break up Cadbury
Indonesia's Astra Agro Revises Up CPO Forecast
Cocoa Supplier Olam to Benefit from Consolidation Among...

Top Headlines
Procter & Gamble Repurchasing Shares, Quiet on...
US Shoppers Going Green Despite Struggling Economy
Wessanen Sells Liberty Richter to World Finer Foods
Cheesecake Factory Sticks to 2010 Forecast
European Commission Refers Greece to ECJ over Unjustified...
JM Smucker's Quarterly Net Income Increases 172%
Cocoa Supplier Olam to Benefit from Consolidation Among...
Avebe and National Starch Food Innovation to Expand...
Auchan Backs Hypermarkets as Rivals Rethink
Ferrero Could Eye Cadbury Gum, Candy Unit
Dole Food Posts Wider Q3 Loss
Fonterra Sells Stake in UK Joint Venture to Arla
Imperial Sugar Company Closes Three-Way Joint Venture...
PepsiCo to Invest $100 Million in Egypt in 2010
Ex-Parmalat Auditors Settle US Investor Lawsuit
Tesco in Broadband Push as Reaches Beyond Groceries
India Sugar Protest Forces Parliament to Shut
Kerry Group Keeps Full Year Earnings Growth Forecast
Nestle Professional to Acquire Vitality Foodservice
Pinnacle Foods Acquires Birds Eye Foods for USD 1.3...
DSM Makes Great Strides in Production Processes for...
Russian Grocer X5 Plans Higher 2010 Capex
Brazil: Laep in Talks to Sell Dairy Plant to Nestle
SunOpta Announces Opening of Natural and Organic Sesame...
Products Comprising, and Uses of, Decarboxylated Phenolic...
Process for the Preparation of Packaged Heat-Preserved...


 


FLEXNEWS 2009 - All rights reserved
ISSN 1950-6228