Ag Policy Blog

Think Tank: U.S. Ag Risks Lost Access Because of TPP Delays

By Chris Clayton , DTN Ag Policy Editor

A centrist Washington, D.C., think tank called The Third Way has issued a report highlighting how U.S. agriculture is losing out because of delays to passage of the Trans-Pacific Partnership.

The report is one of several briefs the Third Way is doing on the trade deal, which was formally signed last week by President

Like anything of consequence, it's unlikely Congress will take up the TPP until after the fall election despite all 12 nations signing the TPP last week in New Zealand. Supporters of the free-trade agreement, including Democrats, are calling on Congress to act rather than delay. A pair of former governors and a former U.S. trade representative had an op-end on Wednesday in the D.C. publication The Hill. They noted another report citing the cost of the waiting.

"The Peterson Institute for International Economics report released last week found that a single year’s delay in implementing this agreement will set the U.S. economy back $77 billion," The Hill op-ed stated.…

The Third Way report highlights that American farmers risk being shut out of some fast-growing Asian markets without passage of TPP. Asian consumers, like everyone else, are price sensitive and higher tariffs make U.S. products less competitive. Meanwhile, the report notes, "other countries are racing to lock in their own lower, preferential rates. This makes their commodities more affordable and, thus, more enticing to foreign consumers -- putting U.S. products at a huge disadvantage."

The report points to how Australia has positioned itself to protect its sales in Japan, which is Australia's second-largest market. The two countries have already cut a separate trade deal, the Japan-Australia Economic Partnership Agreement, which went into effect in early 2015. In beef alone, Australia's tariff in Japan has dropped to 19.5% on frozen shipments while U.S. beef is taxed at 38.5%. The Third Way report notes that once TPP goes into effect, the U.S. will achieve parity with Australia and eventually see tariffs on beef reduced to 9%.

Australia also now has an advantage in tariffs for other products as well such as wine exports or products such as oranges. Australian oranges aren't taxed for part of the year going to Japan while the U.S. faces a 16% tax. Under TPP, the U.S. will have no tax on oranges.

The full report can be found at…

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CRAIG MOORE 2/25/2016 | 9:39 AM CST
Don, thank you for not answering my question?
Don Thompson 2/25/2016 | 6:41 AM CST
Thank you Mr. Moore for making my point.
CRAIG MOORE 2/24/2016 | 10:31 AM CST
Don, I have been paying into SS and Medicare for 47 years. How is putting money into a savings account and then getting that money back, if you live long enough, socialistic? I drive on the roads and pay for it by paying taxes on every gallon of gas I buy. If anything Jay is a socialist when he drives his little electric car without paying a penny for every mile he travels over. I paid tuition going to a public university, how did I miss that "socialistic program" there. Actually the farm grants, like those for grain driers, Medicaid and food stamps are actually "socialistic programs". How many of them do you receive?
Raymond Simpkins 2/24/2016 | 9:26 AM CST
You guys have the wrong lisim what he is doing is Communism.
Don Thompson 2/24/2016 | 7:30 AM CST
USDA farm programs, Social Security,Medicare, Medicaid, food stamps, public roads, public schools, public universities, a federally provided military, etc. are "Socialist Programs". I am sure the majority of those writing here benefit from this socialism without hesitation. The Federal governments selling of the Oklahoma Territory to settlers for pennies on the dollar, and encouraging people to move into the Northwest Territories were "socialist programs". There are many "socialist programs" where blue state tax dollars are shifted to benefit red states. Is Freedom an elimination of this? A majority of Americans would probably support eliminating that wealth transfer.
Gary Leghton 2/23/2016 | 8:00 PM CST
What on earth do you do for a living Jay?
Gary Leghton 2/23/2016 | 7:58 PM CST
That's a compliment from Jay, he is a socialist you know "Big Daddy Government" is the socialists agenda not "Freedom"!
CRAIG MOORE 2/23/2016 | 12:28 PM CST
And Jay, how on earth, with what Tom and Bonnie wrote, could you even refer to them as being the socialist in this conversation?
CRAIG MOORE 2/23/2016 | 12:25 PM CST
Jay, don't you think citizens of the United States should be able to buy products they want or not buy, as they please. If you can say yes to that please, respond on why you believe Obamacare is not a socialistic program.
Jay Mcginnis 2/22/2016 | 8:54 PM CST
Tom and Bonnie you sound like socialists. Don't you beleive that corporations should be able to buy wherever they wish? Next you will have the hammer and sickle on your corn planters!!!
Bonnie Dukowitz 2/21/2016 | 4:06 PM CST
Good points, Tom. I believe, if they are hungry and want it, they will buy it, if they can.
CRAIG MOORE 2/19/2016 | 5:43 PM CST
Jay, if this is such a good deal for everyone, why is there so much money in it to re-train "displaced" US workers? And no, "I drive an electric car" is not the answer for this one.
Jay Mcginnis 2/18/2016 | 12:04 PM CST
Obama needs to push this through by executive order. The GOP kicked and screamed until expiration of oil was lifted, now they obstruct at the expense of the farmer.
tom vogel 2/18/2016 | 11:23 AM CST
Chris: Your insight is very good...thank you. However, we in agriculture must understand that "it is not all about us." It's about the country, and the TPP is horrible for the country. The US will get the shaft on exporting everything, including food. The TPP is nothing more than a way for the rest of the world to legally rob from this country. Be thankful that the TPP has been delayed. It needs to be deep-sixed.