Dairy

Duty Alert for Parmigiano Reggiano PDO

The Consortium's concerns: if applied, US additional tariffs could benefit counterfeiting

Additional exports duties that the Trump administration wants to impose – to compensate for state aid in the dispute between Boeing and Airbus – would have a totally counter-productive effect. It could even be self-defeating for the American market, according to Parmigiano Reggiano PDO protection Consortium. In fact, the latter is to send soon a technical note to the United States Trade Representative (Ustr) about Italy’s major PDO product – both in terms of production value (1.4 billion, which becomes 2.4 billion for consumption, for 40% of exports) and brand awareness. In it, the Consortium will explain the bad effects of the new taxation mechanism as it was conceived.

DUTIES ON PARMIGIANO REGGIANO PDO: AN ADVANTAGE FOR COUNTERFEITING

Today the USA is worth 10,439 tons of authentic Parmigiano Reggiano PDO as it is the second market in the world for the exports of the King of cheeses (behind France with 11,333 tons) for a value of about 130 million that goes to Italian producers. “Net of Trump’s duties, we estimate the American market to double these volumes between now and 2025. In fact, after decades of product’s defense and spreading knowledge, the intangible values of Parmigiano Reggiano PDO are increasingly appreciated by evolved consumers of the two coasts. This is confirmed by the mission just closed in New York for the Summer Fancy Food Show 2019”, Bertinelli said.

Parmigiano Reggiano PDO
The authentic Parmigiano Reggiano’s brand

Duties could have a detrimental effect not only on dairies producing Parmigiano Reggiano PDO and the 5,000 people involved in the Italian supply chain – who risk seeing 8 to 9% of exports to the United States disappear – but also on consumers, taxpayers and operators in the distribution chain in the United States.

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