With the election over and Congress back in Washington, D.C., North American Meat Institute (NAMI) President and CEO Barry Carpenter is calling on Congress to approve the Trans-Pacific Partnership (TPP) agreement.
“The time is now for Congress to act on the TPP, which is integral to the future growth of the U.S. meat and poultry industry,” Carpenter said. “The agreement offers numerous economic opportunities which will create more American jobs and have a tremendous multiplier effect throughout the U.S. economy.”
NAMI says the TPP agreement will reduce or eliminate import tariffs on U.S. meat and poultry products in the world’s fastest growing economic region, making U.S. products more competitive and providing an opportunity for industry growth. Lower tariffs and increased market access will expand export opportunities in key markets such as Japan and Vietnam. At the same time, it will promote transparency, drive innovation and support robust labor standards.
Failing to act on the TPP agreement is economically significant and potentially devastating, according to NAMI. For example, Australian beef exporters currently enjoy an 11 percent tariff advantage in the Japanese market as a result of the Australia-Japan free trade agreement. In 2015, this tariff advantage cost the U.S. nearly $300 million in lost beef sales. As each year passes without the TPP, Australia will continue to benefit as its tariff declines in Japan, while U.S. beef producers and processors will lose against this significant trade advantage, reports NAMI.
TPP is a regional trade deal that includes the U.S., Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. The agreement, and the economic and trade opportunities it represents, also provide a foundation for trade expansion worldwide as it includes the prospect of adding other countries in the future, such as Indonesia, the Philippines, South Korea, Taiwan and Thailand—all of which have expressed interest in joining the trade bloc, according to NAMI.