The Iowa Cattlemen’s Association supports the conclusion of the Trans-Pacific Partnership (TPP) negotiations. On October 5, 2015, TPP was signed by 12 countries on the Pacific Rim including Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and the United States.
The TPP trade agreement will provide a platform for U.S. exports in a region that includes some of the world’s most robust economies, representing nearly 40 percent of global GDP. TPP follows the Trade Promotion Authority (TPA) reauthorization in July, which allowed the United States Trade Representative’s Office to be the sole negotiator in TPP discussions on behalf of the U.S. ICA also supported TPA and encouraged Iowa’s delegation to pass the legislation.
Although details of the agreement are still unknown, TPP will reduce tariffs and level the competitive playing field for US beef exports to export markets. In particular, beef’s largest export market, Japan, will see a tariff reduction from 38.5% to 9% over the next 15 years.
Beef exports currently add more than $350 to each head of cattle sold in the U.S. Additional foreign marketing opportunities will allow the U.S. to not only maintain current demand, but potentially add more value to asking price of a fed steer long term.
“This is a good development for Iowa’s beef business. The Japanese like the marbled beef that comes out of Iowa, and we have a lot to gain from this agreement,” says ICA past president Ed Greiman.
The conclusion of negotiations is the first step in a long process. The White House must make TPP text available to the public for a 60 day comment period before Congress has the opportunity to approve the trade agreement.
Source: Iowa Cattlemen’s Association