The National Cattlemen’s Beef Association (NCBA) and National Pork Producers Council (NPPC) sent a letter, along with 225 other food and agricultural companies and associations, to members of Congress calling for a vote on the Trans Pacific Partnership (TPP).
NCBA President Tracy Brunner said, “Japan is our largest export market and our Japanese customers demand high quality U.S. beef. However, due to the Australia-Japan Economic Partnership Agreement, U.S. beef faces a tariff that is 11 percent higher than Australian beef, our leading competitor. That tax alone makes our beef less competitive and gives Australia’s beef producers a significant advantage that has allowed them to capture over $100 million in additional beef sales at the expense of U.S. producers.”
“We know Japanese consumers want U.S. beef, but just like domestic consumers, they make their buying decision based on price and appearance. Until we level the playing field through TPP, U.S. beef is going to be at an economic disadvantage in Japan. That is why we cannot afford to delay passage of TPP; every day costs our producers real money.”
Upon implementation of TPP the tariff rate on U.S. beef into will immediately drop from 38.5 percent to 27.5 percent. Moreover, that rate will continue to decrease over the following 16 years until it settles at 9 percent.
NPPC also believes the deal could be the “biggest commercial opportunity ever for U.S. pork producers.” Iowa State University economist Dermot Hayes estimates the agreement will exponentially increase U.S. pork exports to Pacific Rim countries and help create more than 10,000 U.S. jobs tied to those exports.
“While U.S. pork producers support the TPP, it is imperative to make sure other countries do not artificially stimulate pork production through support programs in a way that will undermine the concessions they made in the TPP negotiations,” said NPPC President John Weber, a pork producer from Dysart, Iowa. “We appreciate the strong support we are receiving from both the Obama administration and Congress to ensure that U.S. pork producers receive the full benefit of the TPP deal. There are still some critically important issues that need to be worked through, but I’m confident they will be resolved well before Congress votes on the deal.”