Ag Groups Largely Back TPA

OMAHA (DTN) -- Most farm groups reacted with enthusiasm after lawmakers introduced a long-awaited Trade Promotion Authority bill in Congress.

The bill, which was introduced Thursday, could be taken up in the Senate Finance Committee next week with a parallel bill also moving in the House. The Trade Promotion Authority legislation is considered essential to closing the Trans Pacific Partnership, a 12-nation deal that would be the largest free-trade agreement in the country's history.

The American Farm Bureau said the U.S. has much to gain through TPA and it will help agricultural exports continue to climb. Ag exports reached a record $153.5 billion in fiscal-year 2014. Farm Bureau President Bob Stallman said TPA is central to completing trade talks.

"The U.S. is on the brink of completing its most ambitious trade agenda in years," Stallman said. "We stand to lose billions of dollars in future U.S. farm exports if Congress fails to pass these vitally important bills."

The bill has 150 different provisions in which Congress sets guidelines or parameters for any trade deal to come to Congress for an up-or-down vote. Any trade agreement would have 60 days for the public to review it and four months after the president signs it for Congress to vote on the pact.

Still, TPA is drawing fire from largely Democratic-leaning groups such as unions, environmentalists and critics of current food policies. National Farmers Union, which has long been skeptical of the promises of trade deals, also expressed its criticism of TPA as another way to increase trade deficits and lose jobs

"TPA is just the continuation of the same old thing, trade agreements that make huge promises of prosperity and jobs to the American public and deliver nothing but bigger deficits, exported jobs and lost domestic agricultural sales," said NFU President Roger Johnson.

Trade Promotion Authority should help close the deal on the Trans Pacific Partnership, an agreement that has been under negotiation since 2005. Countries in the talks other than the U.S. include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Taiwan and South Korea also are considering joining the pact.

Since the bill would extend TPA through at least 2018, it's also possible that would give time for the Obama administration or the next president to reach an even larger trade agreement with the European Union.

Other farm leaders, particularly those representing specific commodities or products, see opportunities to lower or remove tariffs.

Philip Ellis, president of the National Cattlemen's Beef Association, said past trade agreements have lowered or eliminated tariffs on U.S. beef. Such work must continue for the U.S. to stay competitive.

"The U.S. market is one of the most open markets in the world," said Ellis. "The only way for us to level the playing field is to negotiate increased market access and tariff elimination through free-trade agreements. As a cow/calf producer, the increased trade through these agreements adds value to my cattle and my bottom line. This is not only important for our families, but profitability now sets the tone for future generations of cattlemen and women. I urge Congress to quickly pass TPA to give our negotiators the credibility needed to move forward on pending free-trade agreements."

The National Chicken Council hailed the bill's introduction. The group noted that China and Russia used to be major poultry importers, but have curtailed their purchases in recent years. Thus, it's critical to lower tariffs and expand market access elsewhere.

"Passage of TPA would help ensure foreign access for U.S. chicken, generate more farm income, jobs in rural districts, and improve the U.S. trade balance," said Mike Brown, president of the National Chicken Council.

The U.S. dairy industry also praised the bill, citing that the U.S. now exports the equivalent of one-seventh of its milk production. TPA is the key to unlocking future export opportunities, the group said.

"Knowing that a trade agreement will be considered by Congress under Trade Promotion Authority paves the way to press our negotiating partners to make their best offers on the most sensitive issues," said Tom Suber, president of the U.S. Dairy Export Council. "Clearly, dairy exports fall into that category and the U.S. needs all the tools it can muster to get the best possible deal."

Wade Cowan, president of the American Soybean Association, said TPA has always helped drive demand for soybean production.

"As producers of the nation's leading farm export, soybean farmers know that trade supports rural economies, and ties American producers to consumers around the world," Cowan said. "That's a role we cherish, and one that will be significantly advanced by the legislation introduced today."

It was ditto for the National Corn Growers Association. Chip Bowling, a Maryland farmer and NCGA president, said TPA is critical to ensuring farmers get the best possible deal in trade agreements. Still, Bowling said the clock is ticking on the Pacific and European trade deals.

"Trade benefits American corn and livestock farmers, workers and consumers. Agricultural exports are already a major driver of the U.S. economy, supporting more than 1 million American jobs. If we remove trade barriers and expand our access to global markets, American corn and livestock farmers can do even more," said Bowling.

The National Association of Wheat Growers stressed the importance of trade deals to the industry when 50% of wheat is exported.

"Passage of TPA would send a strong signal that Congress and the administration are united in their commitment to opening markets for the benefit of farmers and rural communities and creating jobs throughout this country," said NAWG President Brent Blankenship.

Chris Clayton can be reached at Chris.Clayton@dtn.com

Follow him on Twitter @ChrisClaytonDTN

(AG/CZ)

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