ISSUES POLICY
Half a Billion New Beef Consumers in Pacifi c Rim Countries Await Our Product
TSCRA encourages passage of the Trans-Pacifi c Partnership; supports free trade with countries that encompass nearly 40 percent of global economy.
By Austin Brown III, TSCRA Marketing Committee chair T
EXAS AND SOUTHWESTERN CATTLE RAISERS ASSOCIATION (TSCRA) leaders and members recognize the important role international markets have in a
successful future for the U.S. beef industry; therefore, we support the Trans-Pacifi c Partnership (TPP) agree- ment that was announced by trade ministers on Oct. 5 in Atlanta. Beef exports add more than $350 per head of cattle
sold in the U.S, and the TPP agreement will signifi - cantly increase international demand for U.S. beef. The TPP will reduce tariffs on U.S. beef and level the playing fi eld in 11 Pacifi c Rim nations and will expand demand for beef products among nearly 500 million consumers in TPP countries. The countries included in this agreement with the
U.S. are Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singa- pore and Vietnam — nations that encompass nearly 40 percent of the global economy. Since the U.S. already has free-trade agreements
with Canada, Mexico, Australia, Peru, Chile and Sin- gapore, the U.S. beef industry is expected to reap the most benefi t from the TPP by accessing additional markets in Japan and Vietnam. Japan is our top export market with $1.6 billion
in beef sales in 2014. The TPP agreement will secure tremendous access to Japan’s beef market. According
to USDA, Japan will eliminate duties on 74 percent of its beef product imports and reduce tariffs on fresh, chilled and frozen beef cuts from 38.5 percent to 9 percent within 16 years. Most of the high-value U.S. beef is sold domestically.
Low-value offal, such as tongues, livers, hearts, stom- achs and kidneys are in high demand in countries like Japan and Vietnam. Through the TPP, the 21.3 percent tariff on these beef parts would, in some cases, be cut in half immediately and will be completely eliminated in 6 to 16 years. TPP will create unprecedented trade opportunities
in other Pacifi c Rim nations. In 2014, the U.S. exported $22.1 million in beef products to Vietnam with tariffs as high as 34 percent. Through the TPP, these tariffs will be eliminated in 3 to 8 years, and tariffs on fresh and frozen beef muscle cuts will be eliminated in 3 years. In Malaysia, New Zealand and Brunei, tariffs on beef will also be abolished if TPP is signed into law. The TPP agreement has been successfully negoti-
ated between the U.S. and other Pacifi c Rim nations. Now, the agreement must be passed in Congress and signed into law by the president. We are informing federal elected offi cials of economic benefi ts the U.S. beef industry could achieve though the TPP agreement. We will work with other stakeholders to urge Congress to act swiftly on fi nal passage.
78 The Cattleman January 2016
thecattlemanmagazine.com
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