Dairy UK – Supplementary Written Evidence (JTN0043)

 

Dairy UK

 

  1. Dairy UK is a processor-led organisation representing farmer-owned co-ops and private dairy companies producing safe, nutritious and sustainable dairy foods. Our overarching mission is to promote the consumption of great tasting British dairy products at home and on the international market.

 

General

 

  1. The Government is to be commended on concluding this agreement. Overall the agreement rolls over the entitlements provided by the EU – Japan bilateral agreement. This ensures that UK exporters are on a level playing field with their EU counterparts. The agreement also provides some additional benefits, but it is too early to tell whether they will prove to be significant.

 

Tariffs

 

  1. The commitments in the EU/Japan deal have largely been transitioned over to the UK agreement, including the staging of tariff reductions. This includes the tariff reductions for hard cheeses which will benefit cheddar cheese. For Stilton, the UK will benefit from any under-utilisation of the tariff rate quota agreed between the EU and Japan for blue veined cheeses.

 

 

Japan MFN Tariff

UK – Japan Agreement

Blue Veined Cheese

29.8%

0% from 2033 onwards (but has quantitative TRQ restrictions)

Cheddar Cheese

29.8%

0% from 2033

 

  1. The amount will be determined by the under-utilisation in the previous March to April fiscal year. However, for the last quarter of the 2020 – 21 fiscal year the calculation will be based on the volumes remaining for the year. Historically EU quotas have been under-utilised. The amount of quota made available to UK exporters will be published by the Japanese customs authorities. In addition, the paperwork requirements for UK exporters using this quota will be simplified. There will be no need to file a marketing plan, instead exporters will only require the normal documentation such as Rules of Origin certificates etc.

 

  1. For butter, milk and milk powders, access to the Japanese market will be confined to the Tariff Rate Quotas agreed under the WTO.

 

  1. A ministerial side letter provides for a review of these arrangements if there is any negative impact on imports into Japan.

 

  1. The Japanese have not sought any reductions in UK MFN dairy tariffs.

 

SPS Agreement

 

  1. The UK agreement transitions the wording of the EU agreement largely unchanged except for three minor technical amendments that do not affect the dairy sector.

 

Rules of Origin

 

  1. The agreement allows for cumulation with EU product: UK processors will be allowed to use EU ingredients. This will protect existing supply chains.

 

Geographical Indications

 

  1.         The agreement rolls over the protection given to the seven UK GIs specified in the EU agreement. It also gives the potential for protection to be extended to a further 70 UK GIs. Both countries will submit applications for further GIs through the normal domestic process. The UK intends to submit the full 84 listed in the UK.

 

6 November 2020