TPP Offers Opportunities for Agriculture Sector; ST&R Webinar to Review
The Trans-Pacific Partnership will eliminate tariffs and includes other provisions that will benefit U.S. agricultural products. Sandler, Travis & Rosenberg will conduct a webinar Jan. 21 to review TPP’s agriculture provisions and the practical impact they will have.
The Office of the U.S. Trade Representative notes that more than 20 percent of U.S. farm production (totaling more than $150 billion in 2014) is exported and that the Asia-Pacific region is the world’s largest market for food and agriculture, with rapid growth expected in the years ahead. TPP will help U.S. farmers and ranchers take advantage of this trend in the following ways.
- eliminates tariffs on the vast majority of U.S. exports of food and agricultural products and provides significant tariff reductions or preferential tariff-rate quotas for the rest
- requires TPP countries to eliminate all agricultural export subsidies
- discourages the use of export restrictions on food and agricultural products as a means of protecting domestic markets from changes in the world market
- ensures that food safety, animal health and plant health measures are developed and implemented transparently and in a science-based manner based on risk
- commits TPP members to work together in the World Trade Organization to (a) improve transparency around the operations of agricultural export state trading enterprises, (b) agree on rules preventing them from receiving special governmental financing or imposing trade-distorting restrictions on exports, and (c) develop multilateral disciplines on export credits, export credit guarantees and insurance programs
- promotes coordination on trade in organic agricultural products
- commits partner countries to provide transparency on government measures on trade in agricultural products derived from biotechnology and provides for information sharing, including on when the low-level presence of biotech material is detected in a shipment of agricultural commodities or food products