Trans-Pacific Partnership (TPP) Agreement

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AFBF Position

What better way to create good jobs at home, help small businesses, expand consumer choices, and improve American competitiveness than selling more of our goods and services to countries around the world? Ninety-five percent of the world’s consumers live outside our borders. Yet, while our markets are largely open to trade, many other countries are not.

That’s why Farm Bureau works every day to build bridges to promising markets abroad, to tear down the barriers that shut U.S. exports out of foreign markets, and to secure a brighter future where international commerce generates economic growth and job creation at home.

Impact

The American Farm Bureau Federation estimates that annual net farm income will increase by $4.4 billion, driven by an increase of direct U.S. agricultural exports of $5.3 billion per year upon full implementation of the TPP agreement as compared to a scenario in which the U.S. fails to pass the agreement while the remaining member countries proceed apace.

It is estimated that increased marketing opportunities for U.S. farmers and ranchers will add more than 40,100 jobs to the U.S. economy. Eliminating tariffs and other barriers on United States’ agricultural products going into TPP countries, the agreement will increase trade for a range of U.S. agricultural products, including beef, pork, fruits and nuts, vegetables, soybeans, poultry, dairy, rice, cotton and processed food products.

Failure to Lead: It is critical to remember that the TPP is a multi-lateral agreement intended to create high quality rules and market access across its 12 members. However, outside of TPP, other member countries would – and indeed are – already negotiating and implementing bilateral agreements without waiting for the United States to complete action. While legally TPP would only go into full effect if the United States ratifies the agreement, other countries will move forward with their trade capabilities regardless of whether or not the United States decides to ratify the agreement. U.S. failure to enact TPP will not see our trade situation stay the same, but will lead to declining net exports and market share in important markets.

What better way to create good jobs at home, help small businesses, expand consumer choices, and improve American competitiveness than selling more of our goods and services around the world?

Projections Should TPP be Passed

  • U.S. beef and pork exports are expected to be $1 billion and $940 million higher respectively.
  • Livestock receipts are projected to be $5.8 billion higher with approval than without.
  • Net farm income is projected to be $4.4 billion higher.
  • U.S. farmers and ranchers are expected to add more than 40,100 jobs to the U.S. economy.
  • Net trade is projected to rise for rice, cotton, beef, pork, poultry, butter, cheese and non-fat dry milk.
  • Crop sector, including fruits and vegetable, receipts are expected to be $2.7 billion higher.

Status

TPP is a multi-lateral agreement intended to create high quality rules and market access across its 12 members. However, outside of TPP, other member countries would – and indeed are – already negotiating and implementing bilateral agreements without waiting for the United States to complete action.

While legally TPP would only go into full effect if the United States ratifies the agreement, other countries will move forward with their trade capabilities regardless of whether or not the United States decides to ratify the agreement. U.S. failure to enact TPP will not see our trade situation stay the same, but will lead to declining net exports and market share in important markets. Farm Bureau supports the TPP agreement.

Be the voice of support for American farmers, businesses, economy, and rural communities!

Tweet a message of support for TPP today, and help spread the word about #FarmedInAmerica. Our economy, businesses, workers and farmers all stand to benefit from increased trade. Visit http://tpp.fb.org/ for more information and state specific data.

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