Falling Behind - What a World Without TPP Would Look LikeWed, 09 Nov 2016 11:06:18 CST
Word from Japan is that their legislature is preparing to ratify the Trans Pacific Partnership, or TPP. Kent Bacus of the National Cattlemen’s Beef Association says it is the United States’ turn to make a move on the trade deal or not. Bacus spoke with Farm Director Ron Hays about what will happen, whichever way Congress chooses to move.
“The important thing to remember is that for TPP to take effect, both the US and Japan have to ratify TPP,” Bacus said, adding that Japan is signaling Congress to call a vote during the lame duck. “If they fail to do so, then that means that TPP will ultimately fail.”
Right not, the US beef industry is at a disadvantage. At present, a 38.5 percent tariff is being held on US beef, while Australian beef has only a 10 percent tax being imposed by Japan. Passing TPP would significantly level the playing field, bringing both the US and Australia under the same tax rate. If Congress does not pass TPP, says Bacus, rates will be increased and the US will effectively become less and less competitive with each passing year. From there, he says things only get worse.
“Unfortunately, if Congress fails to pass TPP this fall,” Bacus said, “the world is going to keep turning and unfortunately Japan is going to be forced to look at other trade partners.
“That means that the United States as a whole will be less competitive throughout the world and more importantly - US producers are going to be the ones holding the bag.”
Listen to NCBA’s Kent Bacus and Farm Director Ron Hays discuss what a world without TPP would look like, on today’s Beef Buzz.
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