November 3, 2000

The International Dairy Foods Association (IDFA) praised a request sent Monday by the House Ways and Means Committee to the International Trade Commission (ITC) for a study on tariff and non-tariff barriers to trade in U.S. processed foods and beverages. Committee Chairman Bill Archer (R-TX) sent the request letter on behalf of the committee and asked the ITC to complete this report by Oct.1, 2001.

"IDFA appreciates the action of the House Ways and Means Committee to launch this analysis. The results of this study will be particularly valuable to the dairy foods industry, as we shape our priorities in the World Trade Organization (WTO) agricultural negotiations," said Janet Nuzum, IDFA vice president and general counsel. Nuzum served as an ITC Commissioner from 1991-1997. "Increased access to foreign markets is crucial for the long-term growth of the U.S. dairy industry, and we expect the ITC report will point out the many barriers that impede international food and beverage trade today."

In the committee's letter, Archer noted that "this request is necessary to expand the economic analysis available on the largest and fastest-growing sector within agricultural trade." Processed food and beverage trade is expected to account for nearly 75% of global agrifood trade by next year. Growth in this sector is increasing at twice the rate of primary commodities trade.

IDFA worked with other processed food organizations to ask Congress for the ITC study. The food industry expects the ITC study will help identify key markets and the range of different barriers distorting trade in various food and beverage products.

"IDFA and other processed food groups already have a strong working dialogue with congressional and ITC staff on this issue, and we look forward to supporting their efforts on this important study," Nuzum said. "The study will add to the bank of information on global markets and impediments to open trade. With these results, we can deepen our understanding of the impact of these trade barriers on U.S. industry, and then sharpen our priorities for U.S. trade negotiations. It is a necessary step to achieve smart negotiating results."