TPP fact sheets shows benefit to ag

Shows benefits to states, commodities

The USDA’s Foreign Agricultural Service released a series of fact sheets regarding the importance of the recently completed Trans-Pacific Partnership agreement to U.S. agriculture. The fact sheets depict how individual commodities and each state will benefit from the agreement between the United States and the 11 other TPP countries (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam).

Secretary of Agriculture Tom Vilsack said, “Increased demand for American agricultural products and expanded agricultural exports as a result of the Trans-Pacific Partnership agreement will support stronger commodity prices and increase farm income. Increased exports will support more good-paying export-related jobs, further strengthening the rural economy.” The following are examples from the fact sheets on how TPP will benefit various commodities.

Pork

  • Japan will eliminate duties on nearly 80% of tariff lines, including processed pork. Remaining tariffs will be cut and the “Gate Price” system significantly altered.
  • Nearly all Malaysian tariffs will be locked in at zero percent.
  • Vietnam will eliminate tariffs currently as high as 34% in five to 10 years.
  • Brunei will eliminate all tariffs immediately.

Beef and veal

  • Japan’s beef tariff, currently as high as 50%, will be reduced to 9%.
  • Japan will eliminate duties on 75% of tariff lines, including processed beef products.
  • Vietnam will eliminate tariffs currently as high as 34% in three to eight years.
  • Malaysia will lock tariffs in at zero percent.
  • Brunei will eliminate all tariffs immediately.

Soybeans and soybean products

  • Japan will eliminate tariffs on soybean oil, currently as high as 13.2 yen/kg. in six years and the current 4.2% tariff on soybean meal will be eliminated immediately.
  • Malaysia will immediately eliminate its tariffs, currently 10%.
  • Vietnam tariffs currently as high as 34% will be eliminated within 11 years.

Corn and corn products

  • Japan will continue to import corn duty-free. New quota created for corn and potato starch.
  • Vietnam tariffs, currently as high as 30%, will be eliminated in four to seven years.
  • Malaysia’s tariffs, currently as high as 8%, will be eliminated immediately.

Fruits

  • Japan, Malaysia and Vietnam will eliminate tariffs on all fresh and processed fruits, including citrus.

Vegetables

  • Malaysia and Vietnam will immediately eliminate all tariffs, and Japan nearly all tariffs, on fresh and processed vegetables. All three countries will eliminate tariffs on potatoes and potato products.

Rice

  • Japan, which excluded rice from its prior trade agreements, will establish a new, duty-free quota for U.S. rice.
  • Malaysia and Vietnam will eliminate tariffs.

The FAS facts sheets are available online.

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