After years of negotiations, the United States and 11 Pacific Rim nations have concluded negotiations for what could be the largest free trade agreement involving the U.S.
The Trans-Pacific Partnership (TPP), if approved by Congress, will eliminate over 18,000 taxes other countries place on U.S. made goods in the form of tariffs.
If approved, the tariff reductions will make the export of U.S. beef and other products more price competitive.
With 95 percent of the population living outside the bounds of the United States, we cannot grow American agriculture by turning our back on a growing international marketplace, Jim Sartwelle, national legislative director for Texas Farm Bureau (TFB), said.
A reduction in tariffs will open new markets in the Asia-Pacific region for U.S. businesses, workers, farmers and ranchers.
According to a statement from the White House, the TPP will eliminate import taxes as high as 40 percent on U.S. poultry products, 35 percent on soybeans and 40 percent on fruit exports.
It will also help American farmers and ranchers by ensuring ag inspections and regulations in other countries are science-based. Those regulations have put American agriculture at a disadvantage in other countries in the past.
Despite those barriers, U.S. Secretary of Agriculture reports TPP countries currently account for up to 42 percent of U.S. ag exports totaling $633 billion.
“Thanks to this agreement and its removal of unfair trade barriers, American agricultural exports to the region will expand even further, particularly exports of meat, poultry, dairy, fruits, vegetables, grains, oilseeds, cotton and processed products,” Vilsack said.
Increased demand for American products will support stronger commodity prices and increase farm income, according to Vilsack.
“Increased exports under TPP will create more good-paying export-related jobs, further strengthening the rural economy,” Vilsack said.
TPP negotiations covered more than just agricultural exports. Negotiations were also made on automotive products, technology, drug patents and other manufactured goods.
Countries involved in the negotiations include the U.S., Canada, Australia, Brunei, Japan, Mexico, Peru, Vietnam and others.
Additional information about TPP and the negotiations can be found on the Office of the United States Trade Representative website here: https://ustr.gov/tpp/overview-of-the-TPP.