Before Secretary of State Rex Tillerson was fired from his position Tuesday, he mentioned how a study of how the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP) will impact the United States after the members of the original TPP was officially implemented the pact last week in Santiago, Chile.
U.S. agricultural groups like the National Association of Wheat Growers (NAWG) say the threat to market share is significant, especially in Japan.
“Once they sign TPP and once the first six countries change their domestic laws to comply, TPP goes into action,” said Chandler Goule, CEO of NAWG. “The U.S. will eventually be a $65 disadvantage per metric ton of wheat, roughly 500 million the first year.”
Goule says wheat industry leaders traveled to Japan earlier in 2018, and when asking about a bi-lateral agreement with Japan, the response was clear.
“The Japanese government was very clear they are not interested in a bilateral agreement,” he said. “They told the U.S. Wheat Associates that we need to do everything we can to join TPP.”
Goule says the message has been sent in a letter to President Trump. He believes the U.S. has lost some of its leverage and ability to negotiate since it left the TPP after Trump was inaugurated.