Will the TPP Actually Help U.S. Ag Exports?

December 17, 2015 04:40 PM

Now that the Trans-Pacific Partnership has the green light to proceed, will U.S. farmers reap any benefits? Ian Sheldon, an economist at The Ohio State University, is hopeful.

“TPP is important, as it is the largest regional free trade agreement that has been struck in the past two decades,” he says.

In fact, TPP countries represent about 40% of the world’s economy, he says. Participating countries include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Vietnam and the United States. Noticeably absent in the agreement is China.

Still, Sheldon says many institutions are predicting significant economic growth under TPP.

“The Peterson Institute for International Economics estimates that under TPP, $225 billion will be added to the global gross domestic product by 2025, including $77 billion to U.S. GDP,” he says.

Of that, an additional $8.5 billion could be captured in the agricultural marketplace, Sheldon says. For exports to Japan alone, USDA suggests TPP could help beef, pork, dairy products, wheat and rice, he says.

“In the case of Japan, 50% of U.S. agricultural exports will face zero tariffs once TPP is implemented,” he says. “Overall, the U.S. agricultural sector is expected to be a big winner from implementation of TPP, with exports to Japan accounting for a large share of these trade gains.”

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Spell Check

Jim Martindale
Spencerville, IN
12/19/2015 01:06 AM

  I'm not surprised that animal production is the projected big gainer. Most of the Far East is headed away from GMO grains leaving the door wide open to the Russians. Watch out when the next notch ratchets up and the folks don't want to eat GMO fed beef and pork. It's coming right at you folks. Who is selling the wheat to South Korea and Japan?

Kearney, NE
12/19/2015 08:37 AM

  Will TPP help Ag exports? No. We may export a bit more, but we will import a lot more. That has been the story of every "free" trade deal that has passed. Alan Guebert has an excellent article,"Free trade's cheap talk", that gives a more in depth look at the false narrative that "free trade" is good for agriculture. The article is well worth the time to read.

Jeanne Rohl
Prescott, WI
12/19/2015 03:53 PM

  We have let the fox into the hen house for good boys! Always off the back of the American farm family. Sure this trade agreement will be great for the trade entities and hell for the small farmer. Great for the governments. Pay a stinking fair price at the farm gate! then trade. Take care of us first. Then trade. America's farmers and ranchers have sold their souls.


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