On Jan. 30, 2017, the United States officially withdrew from the Trans-Pacific Partnership.
The American Farm Bureau Federation estimated that under the TPP annual net farm income would have increased 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 would have added 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 would have increased 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 was 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 could only go into full effect if the United States ratifies the agreement, other countries will move forward with their trade capabilities now that the United States has withdrawn from the agreement.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.
Projections Based on TPP Approval in the U.S.
- 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.
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TPP Facts for the United States
Gains from full TPP implementation. Get the fact sheet here.