US Beef Producers Growing Concerned as TPP-11 Agreement Draws Near

The 11 remaining members of the TPP are moving forward with a modified trade agreement, known as the Comprehensive and progressive Agreement for Trans Pacific Partnership, or the CP-TPP.  Officials with the U.S Meat Export Federation say this updated deal will leave American producers in the dust.  USMEF Economist Erin Borror said market access remains the biggest concern for U.S. Beef.

“Japan is obviously our largest market, and we pay higher tariffs in Japan than any other significant market.  So we have the most to gain and we have the most at stake, as we see Australia, Mexico and Chile already benefiting from lower tariffs for their respective partnership agreements with Japan.”

Borror added those nations will see their tariffs drop even more once the CP-TPP is approved.  She added TPP, before President Trump pulled the U.S. out, would have been an immediate benefit for American beef producers.

“The reductions are front loaded, so immediately tariffs would be reduced to at least what Australia is paying, and then phased down to 9%for 15 years. And the safeguard mechanism which japan maintains on a quarterly basis would be switched into an annual safeguard which has very low likelihood of being triggered.”

The U.S. has free trade agreements in place with several CP-TPP countries, but the major exceptions are Japan and Vietnam.

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