US Ambassador Darci Vetter - Opportunities for U.S. pork in a global market
•Download as PPTX, PDF•
0 likes•482 views
The document discusses the benefits of the Trans-Pacific Partnership (TPP) for U.S. agriculture. It states that TPP will provide unprecedented access for American farmers and ranchers to a region that will contain two-thirds of the world's middle class by 2030. It notes that 43% of U.S. agricultural exports already go to TPP countries. The document also warns that failing to pass TPP would significantly harm the U.S. economy and cede influence in the Asia-Pacific region to China.
Recommended
Recommended
More Related Content
Similar to US Ambassador Darci Vetter - Opportunities for U.S. pork in a global market
Similar to US Ambassador Darci Vetter - Opportunities for U.S. pork in a global market (20)
More from John Blue
More from John Blue (20)
Recently uploaded
Recently uploaded (20)
US Ambassador Darci Vetter - Opportunities for U.S. pork in a global market
- 1. The Trans-Pacific Partnership & Agriculture U.S. TRADE REPRESENTATIVE E X E C U T I V E O F F I C E O F T H E P R E S I D E N T 1
- 2. Trans-Pacific Partnership (TPP) Overview • The Trans-Pacific Partnership = 40 percent of global GDP & is the highest- standard trade agreement in history. • American farmers & ranchers will gain unprecedented access to a region that will support 2/3 of the world’s middle class by 2030. • TPP is the economic cornerstone of the administration’s pivot to Asia, allowing us to shape a global economy that reflects our values. 2
- 4. United States Economy 4 43% $57 billion U.S. agriculture exports to TPP countries in 2015: 43% of all U.S. agricultural exports Agriculture $858 billion U.S. goods and services exports to TPP countries 39% of all U.S. exports 39% TPP will build on our strong base in the region and cement the United States as the leader in agriculture in the Asia-Pacific region
- 5. 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 North America Asia Pacific BillionsofPeople U.S. & Asia Pacific Size of the Middle Class 2009 2030 Asia’s middle class – which is demanding more choice, quality in their food – is the fastest growing market in the world and will consist of 66% of the world’s middle class in 2030. Source: OECD 5 The Asia-Pacific region’s ascending middle class is a tremendous growth opportunity for American agriculture products
- 6. Trans-Pacific Partnership Agriculture Overview • Trade liberalization for every agricultural product, without exception. • Brunei, Japan, Malaysia, New Zealand, and Vietnam will eliminate duties on 93 percent of all agricultural tariff lines -- 70% of these tariff lines will be eliminated immediately. • TPP also establishes new rules to address: • SPS issues • Geographical Indications • Stronger TBT rules. • According to Farm Bureau, passage of TPP would boost net farm income of the agreement by $4.4 billion over levels expected if Congress fails to pass TPP. 6
- 7. Pork Outcome Summary 7 • Japan will eliminate tariffs on more than 65 percent of pork product tariff lines within 11 years & nearly 80 percent within 16 years • “Gate Price System” will remain, but Japan will immediately reduce the duty from a max charge of 482 ¥/kg to 125 ¥/kg to 50 ¥/kg by year 10 • Vietnam will eliminate tariffs on pork products – currently as high as 30 percent – in 5-10 years • Malaysia’s tariffs on pork products will be locked in at 0
- 8. The economic analysis is clear: TPP is a “win” for the U.S. pork 8 $940 million $219 million Net exports of Pork when TPP is fully implemented:
- 9. TPP Exports the American Way of Doing Business 9 In order to meet our high standards, TPP partners will raise their standards on: o Sanitary and Phytosanitary standards; o Technical Barriers to Trade; o Intellectual Property; o State Owned Enterprises; o Labor & Human Rights; o And the Environment.
- 10. Market Access: Non-Tariff Barriers Building on WTO SPS Commitments & TBT Rules Establishing rapid response mechanisms to resolve goods and agricultural issues Promoting transparency and anti-corruption and good regulatory practices Affirming US standards on food safety to ensure that our standards will not be changed Biotech & Organics are provisions included to ensure coordination on key issues affecting trade TPP includes commitments to address Non-Tariff Barriers by: 1 3 4 5 2 10
- 11. Failing to pass & implement TPP has significant economic & geopolitical costs 11 If we fail to implement TPP, the choice is not between the status quo and TPP… The livestock industry will lose $5.8 billion in cash receipts if we fail to pass & implement TPP Delaying TPP by just 1 year represents a permanent loss for the US economy of $94 billion – translating to a cost of roughly $700 per household per year In absence of TPP, U.S. agricultural exports would be $7.2 billion lower
- 12. Source: IDB Integration and Trade Sector based on INTrade. 12 World not standing still: RTA Expansion 1975
- 13. Source: IDB Integration and Trade Sector based on INTrade. 13 World not standing still: RTA Expansion 1995
- 14. Source: IDB Integration and Trade Sector based on INTrade. 14 World not standing still: RTA Expansion 2014
- 15. China Isn’t Standing Still 15 China currently has or is in the process of negotiating preferential access to 17 markets in the Asia-Pacific, including 9 of our 11 TPP partners. China’s Regional Comprehensive Economic Partnership (RCEP) means • Preferential access to 35% of the global economy • No tariffs for China • High tariffs for the U.S. RCEP will not • Protect worker rights • Protect the environment • Promote a free and open internet • Establish fair rules for state-owned corporations Australia Brunei Burma Cambodia Chile India Indonesia Japan Korea Lao Malaysia New Zealand Peru Philippines Singapore Thailand Vietnam
- 17. 17 Industry Support for TPP
- 18. Resource #1: Foreign Agricultural Service – USDA A comprehensive resource for the agricultural component of TPP Link: fas.usda.gov/tpp Resource #2: Office of the US Trade Representative A comprehensive resource about all things TPP Link: ustr.gov/tpp Resource #3: The White House The President’s remarks & helpful videos on trade and TPP Link: whitehouse.gov/issues/economy/trade Resource #4: Department of Commerce Reports on TPP’s benefits by state and by industry for non-ag products Link: trade.gov/fta/tpp Resource #5: International Trade Commission TPP Impact for U.S. Economy & Specific Sectors Link: www.usitc.gov Resources 18
- 19. LINK: fas.usda.gov/tpp Resources: State Factsheet 19
- 20. LINK: fas.usda.gov/tpp Resources: Commodity Factsheet 20
- 22. POCKET SLIDES 22
- 23. TPP Interested Nations 23 South Korea Taiwan Philippines Thailand Indonesia
- 24. Tobacco Benefits in TPP 24 • Tobacco is not excluded from TPP. • All tariffs on agricultural tobacco and manufactured tobacco up to 135 percent will be eliminated under TPP. • All the enforceable commitments on TPP are subject to government-to- government dispute settlement for tobacco, just like for other products.
- 25. Tobacco Control Measures 25 Given tobacco’s unique public health challenges, some TPP countries wanted to exclude it from TPP, but we insisted that tobacco be included. We arrived at a narrowly crafted solution: • Countries have a voluntary opt-in for Investor-State Dispute Settlement (ISDS) for tobacco control measures. • Opt-in applies to tobacco control measures for manufactured tobacco products only. • No existing rights are taken away by this opt-in provision.
- 26. Cuba 26 • Normalizing diplomatic relationships has major economic opportunities. However, significant challenges remain • Cuba Ag products will also need to meet U.S. food safety requirements and abide by WTO rules. • In order to fully normalize our economic relations, actions will need be taken by Congress, the President, & international organizations.