Trump Action On TPP Costly To U.S. Beef Industry
President Donald Trump withdrew the U.S. from the Trans Pacific Partnership (TPP) yesterday. While not unexpected, the president’s action will cost beef producers. TPP would have reduced tariffs on U.S. beef exported to Japan from 38.5% today to 9% over a 16-year period. The U.S. annually exports more than $1 billion worth of beef to Japan.
In addition, the president reportedly is considering action to re-negotiate terms of the North American Free Trade Agreement (NAFTA) with Mexico and Canada. According to the U.S. Meat Export Federation (USMEF), countries involved in TPP and NAFTA account for more than 60% of U.S. red meat exports.
“(The) fact is, American cattle producers are already losing out on $400,000 in sales every day because we don’t have TPP and since NAFTA was implemented, exports of American-produced beef to Mexico have grown by more than 750%,” said NCBA President Tracy Brunner, a cattle feeder and rancher from Ramona.
USMEF President and Chief Executive Officer Philip Seng urged the new administration to return the U.S. to a competitive position so the industry has access to the large customer bases involved in these agreements and can further expand export opportunities.
Source: Kansas Livestock Association