The Effects of the Transatlantic Trade and Investment Partnership Agreement on the Cheese Trade Flows
University of Idaho Seed Grant
Idaho is the third largest cheese producing state in the U.S., and increasing share of Idaho cheese production is exported. Cheese trade is often subject to high tariffs. The Transatlantic Trade and Investment Partnership (T-TIP) is a trade agreement between U.S. and European Union (EU) first proposed in 2013, and expected to be finalized in 2016. T-Tip objectives are to remove trade barriers and promote trade, and it would affect global cheese trade through reduction or elimination of the tariff rates, but also through the introduction of more stringent Geographic Indicator (GI) certifications. GI restrictions would prohibit U.S. cheese manufacturers from using some common food names such as feta, parmesan, Gauda, etc., as those cheese names would be restricted to products manufactured in the regions where those cheeses were first produced. If implemented, these policy changes would affect not just U.S.-EU bilateral cheese trade, but also trade with third countries as well. In this study I will examine the impact of T-TIP agreement on U.S.-EU bilateral cheese trade flows, as well as trade flows with third regions such as U.S.-East Asia. Particular emphasis will be given on analysis that will deliver actionable insights relevant to cheese producers in Pacific Northwest.