Last week, Washington, D.C., hosted Japanese Prime Minister Shinzo Abe. This week, it was European Union’s Trade Commissioner Cecilia Malmstrom. Highlighted on the agendas for both visits were the three “Tsâ€� of trade policy that are currently arriving at critical points – the Trans-Pacific Partnership (TPP), the Trans-Atlantic Trade and Investment Partnership (T-TIP) and trade promotion authority (TPA).

“Our trade partners recognize the importance of TPP and T-TIP,� said U.S. Grains Council (USGC) Chairman Ron Gray. “They also understand that the United States needs to have TPA in place to move these negotiations ahead. TPA ensures that Congress will vote up or down on any proposed agreement as a comprehensive package.�

Prime Minister Abe’s visit underscored the strategic and economic importance of the U.S.-Japan relationship to a stable international order in East Asia. While TPP is politically controversial in both countries, Abe is committed to trade liberalization as part of his strategy for reinvigorating the Japanese economy. 

“Trade liberalization is win-win for the United States and Japan,� said Floyd Gaibler, USGC director of trade policy. “Both countries have industries that fear they can’t compete. But both also have cutting edge, competitive sectors that look forward to export expansion. It’s a net win for both sides – and in the United States, agriculture will be one of the big winners if we can get a comprehensive deal.�

The T-TIP negotiations are not as advanced but could also offer opportunity for U.S. exports, including ag products. The United States and the European Union account for approximately 60 percent of global gross domestic product, a third of world trade in goods and more than 40 percent of world trade in services. Trade between the United States and the EU already supports more than 13 million jobs on both sides of the Atlantic. For U.S. agriculture, non-tariff trade barriers remain an obstacle to export growth to the EU. A strong, comprehensive T-TIP agreement would be an important step towards reducing these barriers and increasing trade.

TPA is the linchpin for both agreements to move forward. Legislation reauthorizing TPA was reported by the Senate Finance Committee last month and will likely be considered next week. If TPA can be passed before Memorial Day, negotiators believe there may be a chance to wrap up TPP before the end of the year. After that point, however, the U.S. presidential election season will be underway, and the political obstacles will mount.