In this file:
· US food producers brace for hit as Pacific trade deal goes into effect
· Cattle President Says CPTPP Finalization Means U.S. Needs Bilateral Trade Deals Soon
· CPTPP increases pressure to begin negotiations with Japan
US food producers brace for hit as Pacific trade deal goes into effect
Cathy Siegner, FoodDive
Jan. 3, 2019
· Seven countries — Australia, Canada, Japan, Mexico, New Zealand, Singapore and Vietnam — ratified the Comprehensive and Progressive Agreement for Trans-Pacific Partnership on Dec. 30, according to CNBC. The remaining four — Brunei, Chile, Malaysia and Peru — are expected to ratify the CPTPP soon.
· The trade deal, which President Donald Trump pulled the U.S. out of early last year, is expected to benefit member counties by cutting tariffs among them and boosting the cost of goods from non-members. CNBC reported that U.S. beef and wheat exports could especially feel the pain from this deal.
· U.S. food and beverage products such as Welch's grape juice, Tyson's pork and California almonds would be subject to tariffs in Japan, but competitors' products from CPTPP countries will eventually be duty-free, according to CNN. In addition, Australia could export more beef to Japan than the U.S. because their foreign beef tariffs would be 27.5% cheaper, CNBC reported.
The CPTPP's implementation is expected to put pressure on U.S. products and commodity producers. It could also pressure the Trump administration into reversing its decision to withdraw from the pact as price differences squeeze U.S. food exports to participating members.
Grain farmers and meat and dairy producers who are already suffering from the administration's tariff wars — including trade delays with China and waiting on the United States-Mexico-Canada trade agreement — are likely to again bear the brunt as the CPTPP takes effect.
"The U.S. beef industry is at risk of losing significant market share in Japan unless immediate action is taken to level the playing field," Kevin Kester, president of the National Cattlemen's Beef Association, said in a statement last month. Besides the lower foreign beef tariffs for CPTPP member countries in the first year, those export tariffs could fall to 9% during the next 15 years, he warned.
That's a stark contrast from predictions made about the original Trans-Pacific Partnership, the name the trade deal went by before the U.S. pulled out. According to a study from the American Farm Bureau Federation, U.S. beef and pork exports were projected to jump by almost $2 billion at full TPP implementation in 2026, and net trade was projected to rise for rice, cotton, beef, pork, poultry, butter, cheese and non-fat dry milk.
Under the CPTPP...
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Cattle President Says CPTPP Finalization Means U.S. Needs Bilateral Trade Deals Soon
Radio 570 WNAX (SD)
Jan 3, 2019
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership became official December 30. The deal includes 11 nations, led by Japan, but not the U.S. Nebraska Cattlemen Association President Mike Drinnen says that leaves American cattle producers fighting larger tariffs and losing market share. It also increases the urgency to strike bi-laterals with Japan and other Pacific Rim nations.
He says they’re working with NCBA to push the administration to finalize the trade pacts.
Drinnen says need to get the trade deal done with Japan is getting more critical with the Comprehensive and Progressive Trans Pacific Partnership enacted...
more, including audio [1:13 min.]
CPTPP increases pressure to begin negotiations with Japan
By Ken Anderson, Brownfield
January 1, 2019
With the CPTPP agreement—the Comprehensive and Progressive Trans-Pacific Partnership agreement—now in effect, there is increased pressure on the U.S. to negotiate a bilateral trade agreement with Japan.
USDA undersecretary for trade Ted McKinney says Japan is a top priority in 2019.
“You can’t put enough importance on Japan. In fact, we’ve talked about the ‘trifecta’, as I’m saying it: USMCA has got to get settled; we’ve got to get China right; and Japan is also in that critical, critical mix,” he says.
CPTPP gives key U.S. ag export competitors, particularly Canada and Australia, lower tariffs on products sold to Japan. That’s a big concern, McKinney says.
“Japan is a terrific market for us and we do not want to cede that—see others steal that.”
McKinney says as long as the negotiations don’t drag on for several months, U.S. agriculture “should be okay”.
“But we cannot get that done fast enough—and I think we can begin in January,” he says...
more, including audio [0:52 min.]