A new report from the U.S. Department of Agriculture Foreign Agricultural Service (USDA-FAS) delves deeper into how the newly-concluded Trans-Pacific Partnership (TPP) will affect Texas and its economy.
The trade deal, which involves the U.S. and 11 other Pacific Rim nations, if approved, will be the largest free trade deal the U.S. is involved in.
By eliminating over 18,000 tariffs on U.S. made goods, USDA officials believe the deal will boost demand for U.S. farm and food products and open new markets.
Increased demand for American agricultural products and expanded agricultural exports as a result of the Trans-Pacific Partnership agreement will support stronger commodity prices and increase farm income. Increased exports will support more good-paying export-related jobs, further strengthening the rural economy, Agriculture Secretary Tom Vilsack said.
FRS reports Vietnamese tariffs, which are as high as 10 percent currently, will be eliminated, helping the Texas and U.S. cotton markets.
Japan’s beef tariff, which is currently as high as 50 percent, will be reduced over time to nine percent. Japan will also reportedly eliminate duties on three-fourths of tariff lines, including processed beef products.
Vietnam will eliminate its tariffs, or taxes, on beef altogether. Malaysia will lock in tariffs at zero percent.
As part of the deal, both Japan and Vietnam are expected to also eliminate tariffs on poultry and related products.
Malaysia will establish tariff rate quotas for live chicks, poultry meal and eggs.
TPP will also benefit Texas grain and oil seed growers as Japan creates new tariff-rate quotas for wheat and wheat products and eliminate existing tariffs for processed products like cookies and crackers.
Malaysia and Vietnam will eliminate tariffs on wheat and wheat products as well.
The current TPP agreement has not yet been released. It’s currently being reviewed by legal counsel. It is expected to then be presented to Congress by the administration where Congress will give the deal an up or down vote.