Agriculture is an industry that depends heavily on exports with some 30% of our production sold to other countries. That explains the reason why the Ag industry has so much interest in the Trans-Pacific Partnership (TPP) trade agreement that has been negotiated with 12 nations representing 40% of the world’s gross domestic product. Farm organizations and Ag businesses are trying to convince the Congress to approve the deal. Keep in mind that although the TPP has been negotiated, it still must be approved by the Congress and signed by the President.
The U.S. International Trade Commission (ITC) has analyzed the agreement and, guess what? Agriculture is the big winner. U.S. Trade Ambassador Michael Froman argues that “The ITC report provides another strong argument why TPP should be passed this year.” With implementation, Ag exports would rise $7.2 billion. At first, our dairy industry wasn’t so sure they liked the agreement, but the report predicts an 18% increase in dairy exports. Our beef industry doesn’t have anything to beef about, with an 8.4% export boost. Pork and poultry come out ahead with rice and wheat losing a little. I don’t think there is any question that, on balance, the TPP would be very positive for our industry. However, when the ITC evaluated how the TPP would affect other U.S. industries beyond agriculture, the trade advantage is modest.