ITC Report Shows Economic Benefit of TPP

Randall Weiseman Alabama, Beef, Cattle, Florida, General, Georgia, Industry News Release, Livestock, Pork

On Wednesday, the U.S. International Trade Commission (ITC) released its report on the economic benefit of the Trans-Pacific Partnership (TPP) to the U.S. economy. The ITC report noted the U.S. agriculture sector will increase output if TPP is passed.

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From the U.S. Department of Agriculture:

WASHINGTON, May 18, 2016 – Agriculture Secretary Tom Vilsack issued the following statement today in response to a study by the U.S. International Trade Commission (ITC) that found the U.S. agriculture sector will increase output if the Trans-Pacific Partnership (TPP) is passed.

“Today’s ITC report echoes what every major reputable study on TPP has now found, from the Petersen Institute to the American Farm Bureau Foundation, which is that TPP will provide strong benefits for the U.S. agriculture sector, with agricultural output set to be $10 billion higher per year by 2032 than it would without the agreement. Agricultural exports drive 20 percent of U.S. farm income and trade is critical not only to the continued growth of not only the sector, but to rural communities at large. Throughout this Administration, we have expanded access of U.S. Agricultural products to new markets and TPP would further expand the markets for our American-grown products, allowing our goods to compete on a level-playing field and reach more consumers hungry for U.S. agriculture. If we don’t act, not only will we lose these opportunities, we will be ceding our leadership in the region to China, allowing them to define the rules that the Pacific Rim plays by. We can’t afford to delay passage; there is simply too much at stake.”

From the National Cattlemen’s Beef Association:

WASHINGTON (May 18, 2016) – Today, the U.S. International Trade Commission released its report on the economic benefit of the Trans-Pacific Partnership to the U.S. economy. National Cattlemen’s Beef Association President Tracy Brunner said this report confirms that TPP not only levels the playing field for U.S. beef exports, but also supports U.S. economic growth.
“Cattlemen and women worked closely with the administration through the U.S. Trade Representative to ensure TPP met the highest standards and lowered taxes and trade barriers in all member countries,” said Brunner. “We supported the conclusion of the agreement in Atlanta in October and have called on Congress to swiftly pass this agreement. This report clearly shows that TPP would not only lower the taxes on U.S. beef into critical markets like Japan and level the playing field with our competitors, it would provide a boon to the entire U.S. economy.”

According to the report, the TPP agreement would increase annual U.S. Gross Domestic Product by $42.7 billion and expand U.S. employment by close to 128,000 full-time equivalents by 2032 when the agreement is fully implemented. Moreover, the report estimates that ten years after full implementation those benefits would continue to grow, expanding U.S. GDP by $67 billion and employment by 174,000 FTE’s. For beef specifically, the Commission estimates that overall beef exports would be about $876 million higher once TPP is fully implemented and that it would have a moderate impact on U.S. beef imports.

“Cattle producers rely on foreign markets and international trade to grow demand for high quality U.S. beef,” said Brunner. “These markets add value to every head of cattle raised and fed in the United States. In order to compete with other global beef producing nations, we need the level playing field provided through TPP. U.S. producers have already lost more than $140 million in sales into Japan alone since 2015 due to their preferential trade agreement with Australia.”

Under the Japan-Australia Economic Partnership Agreement, Australian beef producers benefit from an 11 percent tax advantage on imports into that market. The USDA Economic Research Service estimates that without TPP, U.S. exports of beef to Japan will continue to decline by $105 million annually, or about eight percent. The TPP would immediately reduce the tax on U.S. beef and give Japanese consumers a choice in the retail market unbiased by price.

“The ITC report shows TPP will foster U.S. exports, grow U.S. jobs and spur economic growth,” said Brunner. “We continue to call on Congress to pass this agreement.”