YOUR DUES DOLLARS AT WORK
ADMINISTRATION FINALIZES TPP NEGOTIATIONS CCA, NCBA support deal to benefit beef producers On Nov. 5, the Obama Administration released the full text of the trade deal negotiated under the Trans Pacific Partnership (TPP) between the United States, Canada, Mexico, Japan, South Korea, Australia, New Zealand and other countries in the Pacific Rim. The release of the full document for public review confirms the benefits this trade deal will have for U.S. cattle producers. In a statement released by NCBA, President Phillip Ellis, a cattle rancher from Wyoming said, “TPP represents the highest standard of trade agreements and provides the foundation for increased access and lower tariffs to the Pacific Rim markets. TPP member nations already account for over 60 percent of total beef exports, and lower tariffs will allow us to continue to grow our market share in that region. While the agreement is not perfect, it is a vast improvement over the current tariff rates, and the greatest market access that has ever been negotiated to Japan. "Clearly, working collaboratively we were able to achieve more than we could have alone. The TPP will immediately reduce the tariff to Japan, our largest market for U.S. beef, from 38.5 percent to 27.5 percent. And tariffs will continue to decrease, in some cases be eliminated, over the next 15 years. Every day that goes by before we pass this TPP costs U.S. producers market share in the Pacific Rim. And every day, competing nations continue to negotiate agreements benefiting their producers and domestic economies. "Since passage of the Japan-Australia Economic Partnership in late 2014, we have lost over 11 percent of our sales into Japan. Our market share will continue to erode until TPP is signed into law. America's cattle producing families produce the best beef in the world and deserve a level playing field to compete for global customers; TPP is an outstanding start." In 2014, Japan imported more U.S. beef than any other country with total sales exceeding $1.5 billion. In 2013, international exports of beef products from California accounted for $436 million in cash receipts. 8 California Cattleman December 2015
With multiple ports throughout California, California beef producers are well positioned to offer beef products to willing buyers overseas, especially to our trading partners throughout the Pacific Rim. Congress is likely to take up the approval of TPP following the New Year. Congressional approval will be largely expedited by Congress’ previous approval of Trade Promotion Authority supported by NCBA, CCA and other agricultural organizations across the country. That said, the Obama Administration will face a tough uphill battle of garnering the votes necessary in the House of Representative to pass the deal. NCBA and CCA will be working hard over the course of the debate to help pave the way for a majority in the House. The full text of the TPP can be accessed through the U.S. Trade Representative’s website at www.ustr.gov/ tpp.