TPP poised to move forward

first_imgShare Facebook Twitter Google + LinkedIn Pinterest Numerous agricultural organizations, after reviewing the text of the recently concluded Trans-Pacific Partnership (TPP) agreement, expressed strong support for the TPP deal and called on the U.S. Congress to expeditiously pass the agreement.Initiated in late 2008, TPP is a regional trade deal that includes the United States, Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, which account for nearly 40% of global GDP.“Past U.S. free trade agreements (FTAs) have demonstrated the importance to our industry of opening international markets,” said Dr. Ron Prestage, a veterinarian and president of the National Pork Producers Council. “TPP will provide benefits to our producers that dramatically exceed those of prior trade agreements. I assure you that pork producers across this great nation will do whatever it takes to get TPP passed by Congress and implemented.”Previous agreements have increased U.S. pork exports by 1,550% in value and almost 1,300% in volume since 1989 — the year the United States began using bilateral and regional trade agreements to open foreign markets — and now are valued at nearly $6.7 billion.“The United States now exports more pork to its 20 FTA partners than to the rest of the world combined,” Prestage said. “Free trade agreements work,” he stressed, “not just for pork producers and U.S. agriculture but for the entire U.S. economy. As a nation, we export almost as much to our FTA partners as we do to the rest of the world combined.”More than a quarter of total U.S. pork production now is exported, and those exports add more than $62 to the price pork producers receive for each hog marketed. Pork exports help generate an estimated 110,000 pork-related U.S. jobs.Iowa State University economist Dermot Hayes, who said a final TPP agreement would be “the most important commercial opportunity ever for U.S. pork producers,” estimates the TPP will exponentially increase U.S. pork exports and help create more than 10,000 U.S. jobs tied to those exports.“Without the TPP agreement, U.S. pork exports to the Pacific Rim region would be at a serious competitive disadvantage,” Prestage said. “Competitors such as the European Union, which are negotiating FTAs with countries in the region, will leap at the opportunity to fill the void that congressional delay would create. It is important that Congress act swiftly so that we don’t fall behind.”The TPP has the potential to provide even greater trade benefits if and when it is opened to additional countries, such as Indonesia, the Philippines, South Korea, Taiwan and Thailand, all of which have expressed interest in joining the trade bloc.“NPPC deeply appreciates the efforts of U.S. trade officials in achieving an outcome from the TPP negotiations that will provide enormous new market opportunities for high-quality U.S. pork products,” Prestage said.Not everyone in agriculture, however, is as pleased with the TPP.“This agreement has been peddled to farmers and ranchers as a potential goldmine for farm exports. But as with other trade deals, these benefits are likely to be overshadowed by increased competition from abroad, paired with an uneven playing field that will not only reduce revenues for farmers and ranchers but will also speed the loss of U.S. jobs,” said Roger Johnson, president of the National Farmers Union.
“This agreement looks to be particularly bad for the nation’s ranchers. The beef export opportunities are very modest. Japan included a snapback provision that will allow them to fully reinstate the current high levels of tariffs if it deems that beef imports are hurting its domestic farmers. Japan’s protection, coupled with the very generous access the U.S. gave the rest of the world, will likely push down domestic prices.“While NFU will continue to analyze the text of the agreement, we already know TPP includes no enforceable language to address currency manipulation, an effective maneuver used by our competitors to immediately tilt the playing field in their favor, even after signing an agreement of this scope and magnitude, having the potential to completely wipe out any gains.”last_img

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