June 10, 2016

US meat institute welcomes positive report on TPP

The North American Meat Institute (NAMI) has welcomed the positive findings of the US International Trade Commission's (USITC) report regarding the beneficial impact of the Trans-Pacific Partnership (TPP) on the US economy.

The sectors expected to gain from this landmark agreement are the agriculture, meat and poultry industries.

The report affirms the potential economic gains for American businesses and workers in a region that accounts for nearly 40% of global gross domestic product.

"The USITC's report underscores the critical importance of TPP to the long-term economic stability and viability of the US meat and poultry industry," said NAMI president and CEO Barry Carpenter. "By facilitating trade and investment, as well as reducing or eliminating tariffs and non-tariff barriers on US meat, poultry and animal products in the Asia-Pacific region, TPP will yield greater value for US companies and products, will support high-paying American jobs and will enhance the competitiveness of the US industry in foreign markets."

In 2015, 10% of US beef production, 20% of pork production and 16% of poultry production was exported to foreign markets, according to USDA.

While TPP will augment the competitiveness of US meat and poultry exports across all countries represented in the agreement, meat and poultry exports to high-tariff, high-demand markets, like Japan and Vietnam, will benefit significantly, NAMI stated.

For instance, under the agreement, Japan will reduce import tariffs on major cuts of fresh and frozen US beef to 9% over 15 years after the entry-into-force date, down from the current level of 38.5%. Meanwhile, tariffs on US pork exports to Japan, which are as high as 20%, will be phased out over a number of years.

"TPP will strengthen our strategic relationships with trading partners in the Asia-Pacific region, while promoting transparency, driving innovation and supporting robust labor standards," Carpenter added. "This trade agreement bolsters US leadership in an important economic and geopolitical arena, and provides American businesses with greater confidence and certainty in the international marketplace."

"USITC's report reveals that the US cannot sit idly by while other TPP countries negotiate bilateral and regional free trade agreements that would place American exports, including meat and poultry exports, at a competitive disadvantage," Carpenter continued. "Failure to ratify TPP will result in lost market share for US meat exports, and undermines the long-term position of the US meat and poultry industry, which relies on identifying new markets and consumers."

- NAMI