WASHINGTON, D.C. - February 13, 2026 - The United States and Taiwan signed a new reciprocal trade agreement this week that eliminates tariffs on U.S. dairy exports and addresses non-tariff trade barriers, a move industry leaders say will significantly strengthen American competitiveness in one of Asia's most valuable fluid milk markets. The agreement matters for U.S. agriculture as dairy producers seek expanded export demand amid volatile commodity prices, rising input costs and ongoing farm bill negotiations.

The pact, signed under the auspices of the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States, includes commitments to remove tariff lines on U.S. dairy products while establishing guardrails against non-tariff barriers that can delay or restrict shipments. Ambassador Jamieson Greer attended the signing alongside Taiwan Vice Premier Li-chiun Cheng and Minister without Portfolio Jen-ni Yang.

For U.S. dairy producers, Taiwan represents a strategic growth market. It is currently the third-largest destination for U.S. fluid milk exports, and industry groups describe it as high-value and consumption-driven. By eliminating tariffs and reinforcing science-based sanitary and phytosanitary (SPS) measures, the agreement is expected to improve long-term export reliability.

The National Milk Producers Federation (NMPF), the U.S. Dairy Export Council (USDEC) and the Consortium for Common Food Names (CCFN) praised the agreement, emphasizing both tariff elimination and the reduction of regulatory friction.

Krysta Harden, president and CEO of USDEC, said the deal enhances U.S. competitiveness compared to other global suppliers and provides assurances that unjustified non-tariff barriers will not undermine export growth. Industry leaders also underscored the agreement's focus on science- and risk-based SPS standards - a critical issue for dairy exporters facing evolving regulatory requirements worldwide.

Beyond tariffs, the agreement outlines principles governing import licensing, technical regulations and conformity assessment procedures. These provisions are designed to ensure transparency and predictability in market access - key factors for maintaining supply chain resilience in perishable dairy trade.

The deal also includes language protecting the use of "common names" for dairy products. CCFN leaders stressed that these commitments help prevent third countries from leveraging intellectual property frameworks to restrict generic product terms that American exporters rely on. Safeguarding common names has become a recurring priority in U.S. trade negotiations, particularly in markets where European Union geographical indication policies influence regulatory standards.

Gregg Doud, president and CEO of NMPF, said each agreement that reduces trade barriers strengthens American dairy farms and the rural communities they support. Dairy exports account for a growing share of U.S. milk solids production, making international demand essential to farm-level profitability.

Ambassador Greer characterized the agreement as part of broader U.S. engagement in the Asia-Pacific region, noting its role in enhancing supply chain resilience, including in high-technology sectors. For agriculture, the agreement signals a continued policy emphasis on expanding export access as a strategy to stabilize farm income.

With U.S. milk production efficiency continuing to rise and domestic consumption relatively flat, export markets remain central to balancing supply and supporting prices. Taiwan's tariff-free access for U.S. dairy products is expected to provide incremental demand growth and greater regulatory certainty.

Industry groups indicated they will work closely with U.S. and Taiwanese officials to ensure swift implementation. For American dairy producers navigating tight margins, the agreement offers a clear message: expanded trade access remains a cornerstone of long-term sector competitiveness in the global marketplace.