ARLINGTON, Va. — The United States dairy industry is marking a major step forward in its global trade ambitions with new agreements aimed at expanding access across Southeast Asia, one of the world’s fastest-growing regions for dairy consumption.
The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) welcomed the announcement of fresh trade deals with Malaysia and Cambodia, alongside new trade agreement frameworks with Thailand and Vietnam. The initiatives are designed to boost U.S. dairy exports and improve market competitiveness in a region increasingly dominated by trade pacts with the European Union, New Zealand, and Australia.
“With these new agreements, the administration has delivered big wins for America’s dairy farmers,” said Gregg Doud, president and CEO of NMPF. “Agreements like those struck with Malaysia and Cambodia will ensure we have fair access to Southeast Asia’s fast-growing markets. That’s essential so that our farmers and cooperatives can keep doing what they do best – producing top-quality milk and dairy products for families here at home and around the world. We look forward to working closely with the administration as they turn the new frameworks with Vietnam and Thailand into strong deals as well.”
Significant Trade Gains in Malaysia and Cambodia
The new agreements with Malaysia and Cambodia are expected to create substantial benefits for U.S. dairy producers and exporters.
In Malaysia, the deal will eliminate nearly all remaining tariffs on U.S. dairy products, modernize regulatory procedures, and strengthen protections for common cheese names. It also includes assurances around certification, official recognition of the U.S. dairy safety system, and commitments to base regulatory measures on sound science. The agreement further streamlines facility registration requirements—long considered a key obstacle for exporters.
Cambodia’s pact mirrors many of these elements and goes a step further by prohibiting any facility listing requirement for U.S. dairy goods. The agreement fully removes all tariffs on American dairy exports, creating a level playing field for suppliers entering a market that has shown strong import growth in recent years.
“These agreements with Malaysia and Cambodia open new doors for U.S. dairy exports in two dynamic markets and the frameworks with Vietnam and Thailand offer the promise of more to come,” said Krysta Harden, president and CEO of USDEC. “By removing tariffs, addressing nontariff trade barriers and cutting red tape, the agreements will make it easier for U.S. suppliers to deliver the high-quality dairy ingredients and foods that Southeast Asia’s growing consumers demand. USDEC appreciates the great work of the U.S. negotiating team in securing these important results.”
Frameworks with Vietnam and Thailand Lay Groundwork for Future Deals
The trade frameworks with Thailand and Vietnam establish the basis for comprehensive agreements still under development. Both outline commitments to address long-standing tariff and nontariff barriers that have limited the reach of U.S. dairy exporters.
Industry groups see these frameworks as critical to ensuring that American producers remain competitive in a region where rival exporters have been benefiting from preferential trade terms for years. Malaysia, Vietnam, and Thailand already rank among the top 20 global markets for U.S. dairy products, accounting for $118 million, $127 million, and $87 million in sales respectively last year.
Cambodia, while smaller in volume, imported about $3 million worth of U.S. dairy in 2024 and is viewed as a market with strong future potential as consumer demand and economic growth accelerate.
Maintaining Competitiveness Amid Global Trade Shifts
The U.S. dairy industry’s latest trade successes come at a time of intensifying competition in Southeast Asia. The European Union is advancing its own free trade negotiations with Malaysia and Thailand, while Vietnam has entered the sixth year of its trade deal with the EU. Both New Zealand and Australia already hold long-established agreements across the region, giving them tariff advantages over U.S. exporters.
By securing these new market access deals, U.S. negotiators have sought to narrow that gap and ensure a more level playing field. Analysts say the agreements are essential to safeguarding U.S. competitiveness and sustaining export growth in markets where demand for dairy ingredients and consumer-ready products is expanding rapidly.
The NMPF and USDEC have framed the announcements as not only a trade win but also a strategic milestone for the broader agricultural sector. The organizations emphasized that the benefits will ripple through to U.S. dairy farmers, cooperatives, and processors, supporting jobs and income across rural communities.
Next Steps
Attention now turns to finalizing the frameworks with Vietnam and Thailand and converting them into comprehensive agreements. Both NMPF and USDEC indicated they will continue working closely with federal trade officials to complete those negotiations.
As global demand for dairy continues to rise, particularly across Asia’s emerging economies, U.S. producers are betting that these new trade arrangements will unlock greater long-term growth.
