Report Shows Economic Benefit of TPP

Lizzy SchultzAg Group, Agribusiness, Beef, Dairy, economics, Export, Export, National Milk, NCBA, Trade

Many of the nation’s livestock and animal production groups have stated their support for the ncba-200U.S. International Trade Commission’s recently released report on the potential benefit that is offered to the U.S. economy by the Trans-Pacific Partnership (TPP). The findings of the report align with many of these groups’ previous statements suggesting that the free trade agreement will work to provide multiple benefits for many sectors of the agriculture industry.

National Cattlemen’s Beef Association (NCBA) President Tracy Brunner said that the report confirms TPP’s potential to not only even the playing field for U.S. beef exports, but will also work to support 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.”

The report states that the TPP would increase annual U.S. Gross Domestic Product (GDP) by $42.7 billion and expand U.S. employment by close to 128,000 full-time equivalents by 2032. The report also estimates that those benefits would continue to grow ten years after full implementation. The growth after full implementation would expand U.S. GDP by $67 billion and employment by 174,000 FTE’s. Overall beef exports are expected to increase by $876 million once TPP is fully implemented.

nmpf-logoThe U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) had positive responses to the report as well, and maintain their belief that the dairy industry will be positively impacted by the free trade agreement.

“If properly implemented and enforced, on balance the agreement will represent a step forward for the U.S. dairy industry based on its improvements to the rules of the road governing trade among the 12 signatories. In addition, although the market access portion of the agreement fell short of the export opportunities our industry sought to secure, our economic analysis concluded that overall the TPP dairy market access provisions will be neutral to slightly positive.” Tom Suber, USDEC president, and Jim Mulhern, NMPF president and CEO, said in a joint statement this week.

The National Pork Producers Council (NPPC), which has been a leading voice in support of the TPP, also found the report’s findings to be a win for agriculture, and continues to encourage U.S. lawmakers to pass it.

“The TPP will benefit American consumers, workers, businesses, farmers and ranchers, and we’re confident it will provide enormous new market opportunities for high-quality U.S. pork products,” said NPPC President John Weber. “America’s pork producers strongly support the TPP, and we urge Congress to quickly pass it.”

The report can be accessed here.