China unilaterally lowers cheese tariffs


29 Nov 2017 --- China is unilaterally lowering its cheese tariffs from 12 percent to 8 percent, effective from December 1, 2017. The move will immediately boost US export competitiveness in China and help US suppliers take a larger role in meeting the nation’s booming cheese demand.

“We are very pleased with China’s decision because it will help US cheese exporters and manufacturers chip away the tariff disadvantage with other competitors,” says Tom Vilsack, president and chief executive officer, US Dairy Export Council (USDEC). “We are even more pleased that the process that yielded the decision helped to further cultivate trust and build critical relationships between the US dairy industry and Chinese official institutions, the nation’s dairy industry and customers.”

The reduction is part of a broader package of tariff cuts on food and consumer goods China announced last week to bolster consumer choice. But cheese was included among those products only because of three years of bridge-building efforts led by USDEC.

USDEC’s China Dairy Tariff Initiative, which began in early 2014, focused on working with Chinese authorities to analyze the mutual benefits that would flow from China unilaterally lowering its tariffs on certain dairy products.

Over the last decade, China’s cheese imports soared more than seven-fold to nearly 100,000 metric tons. Already a top-10 cheese buyer, it is on pace to become the largest cheese importer in the world in the coming years.

At the same time, US suppliers have been losing market share, in part due to unfavorable tariff rates vs. competitors.

“We took a proactive response to address the competitive disadvantage our exports were facing,” says Jaime Castaneda, USDEC senior vice president, trade policy. “USDEC recognizes that the US remains at a disadvantage not only in China but in other countries when it comes to tariffs due to lack of US free trade agreements. We are committed to finding ways to recoup that competitive disadvantage.”

In addition to four HS Codes covering cheese, the Chinese tariff changes also reduced duties on two categories of products containing dairy ingredients. Hydrolyzed protein formula for people with special nutritional needs (HS 2106.90.90) was lowered from 20 percent to zero, and prepackaged infant foods (HS 1901.10.90) was lowered from 15 percent to 2 percent. Moving forward, USDEC plans to continue working with China to further reduce tariffs on cheese as well as other dairy products.

“These types of international relationships will be critical to future U.S. dairy export growth and to achieving The Next 5 percent,” said Vilsack.

The Next 5 percent is USDEC’s name for the industrywide effort to expand U.S. dairy exports from the equivalent of about 15 percent of annual US milk solids to 20 percent.

Related Articles

Packaging & Technology News

KHS introduces linear aseptic fillers ideal for bottling on-the-go breakfast products

20 Mar 2018 --- German manufacturer of innovative filling and packaging systems, KHS, have introduced new linear aseptic fillers for the bottling of sensitive products in a space-saving block system. Ideal for the packaging of on-the-go breakfast products like smoothies, milk, and yogurts, KHS are focused on providing solutions to the growing "mobile" consumer trend.

Food Ingredients News

Brexit: Health advocates fear future transatlantic trade deal could undermine efforts

20 Mar 2018 --- The alliance for better food and farming, Sustain, is demanding that clear mandates with health priorities are set for any trade talks between Britain and the US amid concerns that new deals will undermine the UK’s efforts to reduce sugar consumption and import “American levels of diet-related diseases” alongside their produce.

Food Ingredients News

Cargill starts production of optimized stevia extract

20 Mar 2018 --- Cargill has officially started producing EverSweet,  a zero-calorie, next-generation sweetener made with two of the best tasting sweet compounds found in the stevia leaf, Reb M and Reb D.

Food Ingredients News

Start-up focus: Taking insect protein into America’s snacks pantries

19 Mar 2018 --- Most Westerners shudder at the prospect of eating insects, but attitudes towards them vary dramatically across the globe. In fact, around two billion people already eat bugs as part of their diet. As the global population continues to rise, more and more people are looking for insect protein as a sustainable food source. Not only do many insects, including crickets, contain all nine essential amino acids, this type of protein is also sustainable, especially in comparison to traditional meat sources. It takes one gallon of water to produce one pound of insect protein. Almost two thousand gallons of water, by contrast, are poured into every pound of beef that lands on a plate. US-based start-up Chirps Chips is on a mission to educate Western society on the benefits of insect protein in a corn snack.

Packaging & Technology News

Arla to launch Mimica Touch “bumpy” labels capable of minimizing food waste

19 Mar 2018 --- Danish milk, cheese and cream giant, Arla, is set to trial launch a new high-tech food label that turns ‘bumpy’ when food has expired on its dairy products. The innovation – developed by a start-up company, Mimica, holds hope of reducing food waste as labels deteriorate at the same rate as the packaged product, providing consumers with an accurate indication as to whether food is edible, or ready for the bin.

More Articles