TPP Passage is Critical for U.S. Beef Export Market

As the Japanese Diet prepares to pass the Trans-Pacific Partnership, Kent Bacus, NCBA Director of International Trade, discusses what this move means for U.S. passage of the agreement.

Bacus: "The important thing to remember is for TPP to take affect, both the United States and Japan have to ratify TPP. By Japan clearing the first hurdle, that means the onerous is clearly on Congress to pass TPP during the Lame Duck. If they fail to do so, then TPP will fail."

Currently due to the Japan-Australia Economic partnership Agreement, U.S. beef is facing higher tariffs than Australian beef. U.S. producers are losing $400,000 a day into that market lose due to the higher taxes. Japan is the number one export market for U.S. beef. Bacus continues with what this will mean for U.S. beef producers if TPP is not passed.

Bacus: "Well unfortunately, if Congress fails to pass TPP this fall in 2016 — the world will keep turning. Unfortunately, Japan is going to be forced to look to other trade partners. They are already looking to finalize a trade agreement with the European Union. So that means that we are going to be further behind other competitors in our leading export market. China is also looking to set the terms of trade in the Pacific. So that means that the United States as a whole will be less competitive throughout the world, but more importantly the U.S. producers will be left holding the bag."