President Barack Obama said this week that he would send the Trans-Pacific Partnership (TPP) agreement to the U.S. Congress for a vote later this year and that he was “cautiously optimistic� the agreement would actually be considered and approved.
The deal, which encompasses 40 percent of the world’s economy, would be a win for U.S. farmers by reducing tariffs and, even more importantly, addressing non-tariff barriers and creating a platform for other countries to join onto the modern trade agreement. The 12 TPP member countries include some of fastest growing middle classes, which will soon demand even more meat, dairy and eggs that are produced using grains.
The President’s comments are the latest on a rollercoaster of encouraging and discouraging signs for the pact’s future in the United States. Many Congressional leaders have expressed skepticism, and political factors ahead of a U.S. presidential election and potential nomination of a new Supreme Court justice are complicating consideration of the already-complex agreement.
Meanwhile, agriculture and business groups continue to push for the measure to be approved quickly so their members can begin reaping benefits from it.
The American Farm Bureau Federation has made TPP a priority for its massive farmer fly-in to Capitol Hill held this week, releasing a study in conjunction with the event that showed the pact could boost annual net farm income in the United States by $4.4 billion.
TPP will also be front-and-center at the Commodity Classic event next week, which brings together the nation’s grower associations for corn, sorghum, soybean and wheat growers as well as sister organizations like the U.S. Grains Council that support market development around the world.
“While the timeline for TPP ratification within the United States still remains unclear, the Farm Bureau study is another sign of the benefits it would offer for farmers and agribusinesses including our members,� said USGC Chairman Alan Tiemann, who farms in Nebraska. “As the most competitive producer of coarse grains, the best strategy that the U.S. industry can have is to remove market barriers and increase access to both new and existing customers.
“When that happens, through TPP or other trade agreements, the economics of U.S. production are so compelling that U.S. farmers win sales. TPP will clear the road for sales and for future market development that the Council specializes in.�
This agreement has the possibility to increase farm-prices for U.S. corn, soybeans and wheat as well, according to Farm Bureau.
“This could be a critical pivot for U.S. farmers to really begin focusing on the Pacific Rim,� Tiemann said. “The Council will continue to monitor the agreement’s process and stands ready to develop markets, enable trade and improve lives with other TPP member countries when the pact is ratified in the United States.�
Click here to read more about Farm Bureau’s study. More information about TPP is available from USDA’s Foreign Agricultural Service, the Office of the U.S. Trade Representative and the Trade Benefits America Coalition.