The dairy sector is one of the most protected and regulated agricultural sectors. Many countries subsidize their dairy production, impose high tariffs and quota restrictions on imported dairy products, or establish rigorous non-tariff barriers to protect their dairy sector or safeguard domestic food safety. According to UN Comtrade data, in 2019, the United States exported $5B worth of dairy products to countries around the world, making the United States the fifth largest dairy exporter in the world, following New Zealand, Netherlands, Germany, and France.
Why is Electronic Commerce (E-Commerce) important for importers/exporters?
The Internet provides a direct and a more transparent channel for both buyers and sellers to conduct business via e-commerce platforms. E-commerce has enabled small and medium-sized enterprises (SMEs) to reach customers in domestic markets as well as overseas. According to the McKinsey Global Institute, an estimated 12% of global trade in physical merchandises ($2.3 trillion in 2018) -- including business-to-business (B2B) and business-to-consumer (B2C) channels -- is conducted via e-commerce, with around $700 billion being cross-border purchases. In 2018, 1.8 billion people around the world purchased goods online, and 57% of these online buyers purchased goods from sellers abroad, according to the US Congressional Research Service. With the growing use of e-commerce platforms, doing business online has become an equally critical channel for importers and exporters to establish relationships and supply chains as traditional brick-and-mortar outlets.
The US has imposed several rounds of additional tariffs on Chinese products against China’s violation of intellectual property practices under Section 301 of the US Trade Act of 1974. The Office of the US Trade Representative (USTR) has announced that it will open an exclusion process for the 15% additional tariff imposed on products from China on US Section 301 List 4A (Annex B on pages 27-140), which took effect 1 September 2019. This exclusion process will not cover goods on US Section 301 List 4B (Annex D on pages 147-168), which is scheduled to be implemented on 15 December 2019.