The National Pork Producers Council (NPPC) met with Canada this past week to discuss the inclusion of Canada in the Trans-Pacific Partnership (TPP) trade negotiations.
The senior-level bilateral consultation marked one of several talks held between the two trading giants since the Canadian prime minister’s indication in November 2011 of interest in joining the TPP. That month, leaders of Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, Vietnam and the United States announced the achievement of broad outlines of a trade partnership.
NPPC opposes Canada’s participation in the TPP because of its large subsidies to the Canadian pork industry. NPPC says these large subsidies negatively affect the U.S. pork industry, are in violation of World Trade Organization rules and a U.S. countervailing duty law.
An analysis by Iowa State University economist Dermot Hayes estimates within 10 years of the implementation of Canada’s new Ontario Risk Management Program, which offers income supplementation to Canadian pork producers, U.S. pork production value could decrease by $162 million and 1,300 jobs could be lost.
NPPC says it cannot support Canada’s inclusion in the TPP until that country removes these subsidies.