Countries reach Trans-Pacific Partnership agreement

Negotiators from 12 countries reached an agreement on October 5 on the Trans-Pacific Partnership (TPP), resulting in a trade pact that vows to cut trade barriers as well as set labor and environmental standards.
Countries involved in the negotiations that stretched over a time span of more than five years are the United States, Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Reactions mixed from US leaders

Signs of partisan disagreement have already surfaced, as U.S. Agriculture Secretary Tom Vilsack, a Democrat, and U.S. House Agriculture Committee Chairman K. Michael Conaway, a Republican, have expressed differing levels of confidence in how the agreement will affect trade of U.S. Agriculture products.
The agreement is being hailed by Vilsack, who issued the following statement: "An agreement on the Trans-Pacific Partnership negotiations provides a more level playing field in trade for American farmers. The agreement would eliminate or significantly reduce tariffs on our products and deter non-science based sanitary and phytosanitary barriers that have put American agriculture at a disadvantage in TPP countries in the past. Despite these past barriers, countries in the Trans-Pacific Partnership currently account for up to 42 percent of all U.S. agricultural exports, totaling $63 billion. Thanks to this agreement and its removal of unfair trade barriers, American agricultural exports to the region will expand even further, particularly exports of meat, poultry, dairy, fruits, vegetables, grains, oilseeds, cotton and processed products.
"Increased demand for American agricultural products and expanded agricultural exports as a result of this agreement will support stronger commodity prices and increase farm income. Increased exports under TPP will create more good paying export-related jobs, further strengthening the rural economy. Today, agricultural trade supports more than 1 million jobs here at home and contributes a trade surplus year after year to our nation's economy. All of this activity benefits rural communities and keeps American agriculture on the cutting edge of global commerce. The TPP agreement will contribute to the future strength of American agriculture and helps to ensure that the historic agricultural trade gains achieved under President Obama since 2009 will continue.”
However, Conaway is not as confident.
“We have long discussed the potential benefits of TPP for all of American agriculture. That being said, I have repeatedly expressed concerns to our negotiators about the lack of progress in several key areas that, if not adequately addressed, would make passage of this agreement incredibly difficult in the House,” said Conaway.
Specifically, Conaway is concerned about a lack of market access for U.S. rice, sugar and dairy products.
“At this time, I am skeptical that these concerns were sufficiently addressed but will remain open-minded, and I look forward to studying the agreement,” said Conaway.

Industry groups react to TPP agreement

Since industry groups have not had the opportunity to see the full text of the agreement, they have been guarded in their response to the TPP pact. However, initial reactions have been ones of optimism.
The National Pork Producers Council (NPPC), in a press release, stated it was confident that the agreement will benefit all sectors of the U.S. economy and will provide new opportunities for U.S. pork products.
The National Chicken Council (NCC) stated: “The TPP represents a significant opportunity to expand U.S. chicken exports and bring increased economic benefits to chicken farmers and companies across the country.”
The National Corn Growers Assocation (NCGA) said past free-trade agreements have positively impacted America’s farmers and ranchers, and it is hopeful that TPP will have similar results.

What 7 US agriculture leaders say about TPA

The U.S. Senate on May 22 passed the Trade Promotion Authority (TPA), a move celebrated by the U.S. agriculture industry. Now that TPA has passed the Senate by a 62-37 vote, the measure will go on to the House for a vote.
TPA defines objectives and priorities for trade agreements the United States negotiates and establishes consultation and notification requirements for the president to follow throughout the negotiation process. Once trade negotiators finalize a deal, Congress gets to review it and vote without amendments on it.
Here is what 7 U.S. agricultural leaders are saying about TPA:
1. Tom Vilsack, U.S. agriculture secretary: "Over 70 organizations representing America's farmers and ranchers, and past secretaries of agriculture in both parties dating back to the Carter Administration all support Trade Promotion Authority because export sales are vital for U.S. agriculture. Last year, agricultural exports totaled more than $150 billion and for many of our products, foreign markets represent half or more of total sales. Those exports supported approximately 1 million U.S. jobs last year. The economy is strengthened and better paying jobs are created in rural America and communities throughout the country by the additional economic activity that flows from expanded farm and food businesses."
2. Mike Brown, President of National Chicken Council: “NCC applauds the Senate action to pass TPA.  We urge prompt passage of this legislation in the House to strengthen the position of U.S. international trade negotiators as they continue to move forward with new agreements, such as the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP). At one time, Russia and China were the United States’ two largest poultry export markets, but these two markets have been severely disrupted with trade curtailed from previous levels.  It is now more important than ever to expand poultry sales to other world markets. Passage of TPA in the House, followed by the president’s signature, would help ensure foreign access for U.S. chicken, generate more farm income, jobs in rural districts, and improve the U.S. trade balance.”
3. Keith Williams, Communications and marketing vice president, National Turkey Federation: “With more than 10 percent of turkey products exported, TPA is a critical tool in completing important agreements to promote more sales to customers abroad.”
4. Ronald Prestage, National Pork Producers Council president: “U.S. trade negotiators will have the leverage they need to close the TPP negotiations once TPA is approved. And the U.S. pork industry needs TPP to continue growing our exports.”
5. Larry Pope, President and CEO of Smithfield Foods: "TPA allows U.S. trade negotiators to get the best trade deal possible for our food producers. This is especially important as the U.S. negotiates the Trans Pacific Partnership Agreement and the Transatlantic Trade and Investment Partnership. The TPP alone would generate more than 10,000 U.S. jobs in the pork industry and 110,000 total U.S. jobs."
6. Chip Bowling, President of the National Corn Growers Association: “This legislation is critical to removing trade barriers, expanding our access to global markets, and ensuring farmers get the best possible trade agreements. America’s farmers and ranchers are counting on the House of Representatives to step up and pass this important legislation as soon as possible.”
7. Bob Stallman, President of American Farm Bureau Federation: “The U.S. leads the world in agricultural exports thanks to the hard work and ingenuity of American farmers and ranchers. Creating new partnerships and expanding access to international markets will drive us forward in the global marketplace. … TPA streamlines negotiations and strengthens our position at the bargaining table. We urge the House now to act swiftly in passing trade promotion authority to protect the future of agricultural trade.”

Former US ag secretaries urge Congress to pass TPA

A bipartisan group of former U.S. agriculture secretaries, representing all past administrations from those of President Jimmy Carter to President George W. Bush, issued an open letter urging Congress to pass Trade Promotion Authority (TPA). The former secretaries note that boosting trade and exports is highly beneficial to America's agriculture economy and that Trade Promotion Authority — which has been given to all previous presidents since Gerald Ford (with similar authority granted to all presidents since Franklin Delano Roosevelt) — is critical for successfully negotiating new trade partnerships that boost exports and create jobs. Congress could begin consideration of legislation to grant President Obama Trade Promotion Authority as early as next week.
The former secretaries to sign the letter included Ed Schafer (2008–2009), Mike Johanns (2005–2007), Ann Veneman (2001–2005), Dan Glickman (1995–2001), Mike Espy (1993–1994), Clayton Yeutter (1989–1991), John Block (1981–1986), and Robert Bergland (1977–1981).
The letter reads:
“As former U.S. Secretaries of Agriculture, we know firsthand the importance of trade to America's farm and ranch families. Access to export markets is vital for increasing sales and supporting farm income at home. Recognizing the importance of exports, we worked hard to open foreign markets, including negotiating new or expanded trade agreements with other countries. Trade agreements lead to expanded agricultural exports by promoting economic growth, removing trade barriers and import duties and developing mutually beneficial trade rules.
“Key to our ability to negotiate and implement market-opening agreements has been enactment of trade negotiating authority. This authority, now called Trade Promotion Authority, ensures that the U.S. has the credibility to conclude the best deal possible at the negotiating table. TPA also ensures common negotiating objectives between the President and the Congress, and a continuous consultation process prior to final Congressional approval or disapproval of a trade agreement.
“Every President since Gerald Ford has received TPA. Thanks to opportunities created by trade agreements, U.S. agricultural exports in fiscal year 2014 soared to a new record of $152.5 billion propelling farm income also to new highs. Trade helps farmers, their suppliers, distributors and customers. Exports support rural economies and the U.S. economy as a whole through agricultural processing, ancillary services and a host of related businesses. This was true when each of us served as U.S. Secretary of Agriculture, and it is true now.
“We are excited about new opportunities for U.S. agriculture in foreign markets. Opening markets helps farm families and their communities prosper. Other governments also recognize this and are actively forging their own trade agreements. If the United States stands still, other countries will quickly move ahead of us.
“For us, the choice is clear: we encourage Congress to enact Trade Promotion Authority and support trade agreements that help U.S. farmers, ranchers, and producers thrive.”

EU commissioner seeks to negotiate free trade accord with US

European Union Trade Commissioner Karel De Gucht has asked for a mandate to negotiate a free trade accord with the United States.
EU governments must approve De Gucht's request, the first formal step in the process for beginning negotiations on an agreement that U.S President Barack Obama first announced during his February 12 State of the Union Address. Former U.S. Trade Representative Ron Kirk said on February 13 that "everything's on the table across all sectors," including agricultural issues and genetically modified products, Bloomberg News reported.
A free-trade accord would remove tariffs, ease regulatory barriers and expand access in investment, services and public procurement, according to the EU, which predicts a deal will boost trans-Atlantic gross domestic product by between 0.5 percent and 1 percent. Investment and trade in goods and services between the United States and Europe amounted to $4.9 trillion in 2011, EU figures show.
France has voiced concerns that the free-trade talks will affect agriculture and food safety and EU governments may take time to weigh the request to start discussions. But De Gucht has said he expects to get the green light from the 27 member states.
Talks with the EU may help Obama meet his goal of doubling exports by the end of 2014 as World Trade Organization negotiations stall and China expands its role internationally.

Obama reveals negotiations that could help agricultural trade

U.S. President Barack Obama in his February 12 State of the Union Address mentioned a pair of trade negotiations that could have a positive impact on the trade of U.S. poultry, livestock and feed commodities.
“To boost American exports, support American jobs, and level the playing field in the growing markets of Asia, we intend to complete negotiations on a trans-Pacific partnership, and tonight I’m announcing we will launch talks on a comprehensive trans-Atlantic trade and investment partnership with the European Union. Trade that is fair and free across the Atlantic supports millions of good-paying American jobs,” Obama said.
If those talks result in Europe reducing barriers on U.S. meat products and genetically modified crops, it would benefit those in the agriculture sector, as well as others who transport those commodities, USDA broadcaster Gary Crawford said in a United States Department of Agriculture radio report.
Bob Stallman, president of the American Farm Bureau Federation, welcomes the news of talks with the European Union, but is not yet ready to celebrate a victory of U.S. agriculture.
“Farm Bureau is encouraged that some long-standing issues hindering trade between the U.S. and the EU, such as sanitary standards for beef, have lately been addressed. A constant commitment to removing barriers to agricultural trade is necessary in order to achieve a worthwhile agreement for U.S. agriculture,” said Stallman. “Farmers and ranchers have been frustrated over the seemingly endless array of non-tariff barriers Europe applies to many of our agricultural commodities and products. We are cautiously hopeful that these negotiations will yield positive results for U.S. agriculture.”

US poultry, egg industry groups support trade agreements

The USA Poultry & Egg Export Council, National Chicken Council, National Turkey Federation and United Egg Producers issued a joint statement supporting the decision to send three pending free trade agreements with Korea, Colombia and Panama to Congress for approval. The groups say the U.S. poultry and egg industries have strongly supported these negotiations since they concluded more than four years ago.
The three FTAs could generate almost $1.4 billion in additional U.S. poultry and egg exports annually, say the groups. According to U.S. Department of Agriculture calculations, the industry’s current annual exports of nearly $4.4 billion support more than 50,400 U.S. jobs, and every additional 1 billion dollars in U.S. poultry and egg exports could mean 11,525 American jobs throughout the economy.
The U.S.-Korea FTA would improve market access for U.S. poultry and egg exports to South Korea, mostly by duty reduction and elimination. The U.S.-Colombia FTA would cut duties, eliminate variable duties and give the U.S. a 27,040-metric ton tariff rate quota at zero duty with 4% annual growth for chicken leg quarters. The U.S.-Panama FTA would eliminate duties on some poultry products within five years and establishes a preferential duty-free TRQ for chicken leg quarters that starts at 660 metric tons and grows each year by a 10% compound rate.

USDA to re-establish APAC, ATACs committees to provide advice on agricultural trade policies, priorities

The U.S. Department of Agriculture (USDA) is accepting nominations to re-establish the Agricultural Policy Advisory Committee for Trade (APAC) and six different Agricultural Technical Advisory Committees for Trade (ATACs).
The USDA and the U.S. Trade Representative rely on these committees, originally established by Congress in 1974, to provide advice on U.S. trade policy and priorities. The APAC submits advice on agricultural trade policy objectives and positions with regards to trade agreements and other trade matters. The ATACs focus on specific commodities: animals and animal products; fruits and vegetables; grains, feeds, oilseeds and planting seeds; processed foods; sweeteners and sweeteners products; and tobacco, cotton and peanuts.
Member nominations must be received by 5:00 p.m. on Dec. 17, 2010.

Obama names chief agricultural negotiator

President Barack Obama nominated Dr. Isi A. Siddiqui, a prominent agricultural scientist, to be the U.S.'s next chief agricultural negotiator in the office of the U.S. Trade Representative.
Presently, Siddiqui is the vice president for science and regulatory affairs at CropLife America. He previously was employed by the California Department of Food and Agriculture for 28 years and has also served the Clinton administration in various roles related to agriculture.
The American Feed Industry Association expressed its support of the nomination.