PET Food Processing - September 2018 - 34

REGULATORY

Relevant US export numbers since
NAFTA was implemented in 1994:
US animal food exports have grown from $764 million to $3 billion.
US pet food exports to Canada and Mexico have grown from 38% to 50%, an increase of 184%.
US pet food exports to the rest of the world have increased by 129%.
The US currently exports tariff-free to Canada and Mexico.
Source: US Department of Commerce, US International Trade Commission, USDA Foreign Agricultural Service and American Feed Industry Association

excellent examples of the ability of US pet food makers
to compete and thrive in these markets.
Canada, Japan and Mexico alone account for almost
60 percent of total pet food exports. PFI applauds USDA
for its work over many years to lay the groundwork for

Canada, Japan
and Mexico alone
account for almost
60 percent of total
pet food exports.
US pet food product exports around the world. Their
work has allowed pet food and treat makers to establish
and expand their presence in these important markets,
providing pet owners in these countries with more options when choosing what to feed their cat or dog.

The Value of NAFTA
Two of the top three pet food export markets are trade
partners through NAFTA, a 1994 trade deal that reduced
barriers and facilitated access for businesses throughout
Canada, Mexico and the US. NAFTA allows for a predictable flow of goods and services, including both pet
food ingredients and finished products. PFI has been
a steadfast supporter of NAFTA, which has eliminated
tariffs for pet food trade and created a significant North
American market, with manufacturing, supply and distribution chains that span three countries. NAFTA has
enabled synergistic relationships among companies in
NAFTA countries, resulting in more than $820 million
in bilateral (Canada and US) trade in pet food products.
PFI agrees with many food and agriculture stakeholders that NAFTA has greatly benefited growers and producers and that, as with any 24-year-old agreement, it
can be improved. That said, PFI is eager to see a successful conclusion to the NAFTA renegotiation. PFI has met
with policymakers, federal administration officials and
USDA leadership to advocate for a trade deal that im-

PET FOOD PROCESSING | September 2018 | www.petfoodprocessing.net

proves the existing agreement while retaining the provisions that allow US pet food makers to continue to serve
pet lovers across North America.

Challenges in China
While NAFTA has been an unqualified success for US pet
food makers, access in other key markets has been hampered by unscientific and onerous regulations that serve
as barriers to entry. A prime example is China, a country
with a middle class the size of the entire US population
that has imposed regulations and practices to effectively
keep US pet food products out of the market. Last year,
US exports to the growing Chinese pet food market were
merely $6.5 million. At the same time, China exported to
the US almost $148 million in pet food products. US beef
recently regained access to the Chinese market, though
with strict requirements, and the time is now for China
to reopen its pet food market to the US pet food products.
Newly enacted tariffs pose yet another hurdle for the few
American pet food makers exporting to China and those
seeking market access. US pet food exports to China are
now subject to a 25% tariff. PFI fully supports US government officials' efforts to reach an agreement with China
that does away with their unscientific restrictions on ruminant-origin ingredients and gives Chinese pet owners the
option to choose safe US pet food products for their dogs
and cats.

Advocacy for American Goods in a
Global Marketplace
While the road ahead for US food and agriculture is filled
with challenges, these sectors seek the opportunity to compete for consumers' business around the world. American
pet food and treat makers have the ability to provide highvalue products globally for new generations of pet owners.
With access to developed and emerging markets, along
with science-based, transparent and predictable regulatory
systems in these countries, this can happen.
PFI is committed to remaining engaged on trade issues and is active in coalition efforts and legislator outreach to communicate the value of international market
access. If exports are important to the future growth of
your business, PFI encourages you to share with member of Congress what trade means to your business. PFP

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PET Food Processing - September 2018

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