International Trade Commission Report Shows Economic Benefit of TPP
WASHINGTON (May 18, 2016) – Today, the U.S. International Trade Commission released its report on the economic benefit of the Trans-Pacific Partnership to the U.S. economy. National Cattlemen’s Beef Association President Tracy Brunner said this report confirms that TPP not only levels the playing field for U.S. beef exports, but also supports U.S. economic growth.
“Cattlemen and women worked closely with the administration through the U.S. Trade Representative to ensure TPP met the highest standards and lowered taxes and trade barriers in all member countries,” said Brunner. “We supported the conclusion of the agreement in Atlanta in October and have called on Congress to swiftly pass this agreement. This report clearly shows that TPP would not only lower the taxes on U.S. beef into critical markets like Japan and level the playing field with our competitors, it would provide a boon to the entire U.S. economy.”
According to the report, the TPP agreement would increase annual U.S. Gross Domestic Product by $42.7 billion and expand U.S. employment by close to 128,000 full-time equivalents by 2032 when the agreement is fully implemented. Moreover, the report estimates that ten years after full implementation those benefits would continue to grow, expanding U.S. GDP by $67 billion and employment by 174,000 FTE’s. For beef specifically, the Commission estimates that overall beef exports would be about $876 million higher once TPP is fully implemented and that it would have a moderate impact on U.S. beef imports.
“Cattle producers rely on foreign markets and international trade to grow demand for high quality U.S. beef,” said Brunner. “These markets add value to every head of cattle raised and fed in the United States. In order to compete with other global beef producing nations, we need the level playing field provided through TPP. U.S. producers have already lost more than $140 million in sales into Japan alone since 2015 due to their preferential trade agreement with Australia.”
Under the Japan-Australia Economic Partnership Agreement, Australian beef producers benefit from an 11 percent tax advantage on imports into that market. The USDA Economic Research Service estimates that without TPP, U.S. exports of beef to Japan will continue to decline by $105 million annually, or about eight percent. The TPP would immediately reduce the tax on U.S. beef and give Japanese consumers a choice in the retail market unbiased by price.
“The ITC report shows TPP will foster U.S. exports, grow U.S. jobs and spur economic growth,” said Brunner. “We continue to call on Congress to pass this agreement.”