South Korea: The US-European dairy tariffs will be abolished from January 2026

Published 2023년 4월 4일

Tridge summary

South Korea's domestic milk industry may face a narrowed position due to the full opening of dairy products from the US and EU in 2026, when tariffs on their dairy products will be abolished. Tariffs on US dairy products will decrease to 0% by 2026, and EU dairy products tariffs will also be eliminated by the same year. This could lead to an increase in imports of these dairy products, which have already been rising since 2019. Experts recommend that the milk industry find ways to strengthen its competitiveness and consider developing new dairy products. They also highlight the importance of increasing investment in the milk industry to increase added value and achieving self-sufficiency in milk to meet basic supply and demand.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

It is pointed out that if full opening of dairy products begins in 2026 at the earliest according to free trade agreements (FTAs) with each country, the position of the domestic milk industry may become narrower. According to the milk industry on the 3rd, tariffs on dairy products (milk and cream) from the United States and the European Union will be abolished from January 2026. In the case of US imports, the tariff applied this year is 7.2%, but it will be lowered step by step, such as 4.8% next year, 2.4% in 2025, and 0% in 2026. EU dairy products also have tariffs of 9.0% this year, which are gradually lowered every year, and will disappear altogether in 2026. As processed oil is already imported from abroad, imports are rapidly increasing. According to the Korea Customs Service, total imports of domestic dairy products increased from 958,400 tons in 2019 to 1,534,900 tons last year. Sterilized milk that can be stored at room temperature has a long shelf life and is cheaper ...

Source: Donga