France is a leading dairy producer, processor, and exporter in the European Union (EU) and its industry is expected to be significantly impacted by the termination of the EU production quotas in 2015. There are currently intense discussions within the industry and among policy makers on how to adapt to this major change in policy. Dairy supply in the most productive regions of France has the potential to increase once quotas are abolished, which could result in higher exports of dairy commodities. Dried products production capacity is already being expanded, which may impact U.S. trade, since France and U.S. products (mainly non fat dried milk) compete on world markets. In addition, France continues to protect the production of high-value products sold under Geographical Indications (GIs), where productivity is lower. France has vigorously defended GIs in the past and will continue to push strongly for wider recognition of GIs during the Transatlantic Trade and Investment Partnership negotiations.
