October 17, 2016
New USDA report: TPP to create growth for dairy industry
Continued growth of the US dairy sector is largely contingent on trade, according to a new report by the US Department of Agriculture's Office of the Chief Economist.
The report, which was shared by US Agriculture Secretary Tom Vilsack at a roundtable discussion with US dairy producers October 11, also said the Trans-Pacific Partnership (TPP) could create an additional $150-$300 million in annual US dairy exports.
Free trade agreements have contributed to the growth in US dairy exports and helped to address tariff and nontariff barriers that disadvantage US products in overseas markets. US dairy exports to free-trade-agreement partners grew from $690 million in the year prior to each agreement's entry into force to $2.8 billion in 2015, driven by lower trade barriers and increased US competitiveness.
As early as November 2015, Vilsack has given his support for the TPP, saying it would "advance US economic interests in a critical region that accounts for nearly 40 percent of global GDP".
"It will also help the United States respond to the regional and bilateral trade agreements that are already in place or are being negotiated by competitor countries", he said then.
Besides the US, the proposed TPP includes Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
Negotiations on the TPP were concluded in October 2015, and the partnership was signed in Auckland, New Zealand, on Feb. 4.