Meat Industry Groups Back TPA

OMAHA (DTN) -- Some of the nation's major meat industry groups made it clear Monday that they are "all-in" which in comes to renewing Trade Promotion Authority for President Barack Obama to help close a trade deal in the Pacific.

The National Cattlemen's Beef Association, National Chicken Council, National Pork Producers Council and National Turkey Federation all issued statements Monday in a concerted effort to draw attention to TPA and their interest in getting a 12-nation Trans-Pacific Partnership deal completed.

"It is no surprise that agricultural producers are joining the chorus of voices calling on Congress to renew Trade Promotion Authority," said Agriculture Secretary Tom Vilsack following the news releases from the livestock and poultry groups.

Vilsack noted the past six years were the strongest period for agricultural exports in the history of the nation. "What makes the agricultural economy stronger makes our entire nation's economy stronger," Vilsack said. "It is imperative that Congress act on Trade Promotion Authority early this year."

Fiscal years 2009 to 2014 represent the strongest six years in history for U.S. agricultural trade, with U.S. agricultural product exports totaling $771.7 billion. Agricultural exports last fiscal year reached $152.5 billion, the highest level on record, USDA stated in a news release.

Trade negotiators for the U.S. and the 11 other countries meet again this week in New York as a possible deal is expected in the early spring. Meanwhile, legislation is expected to be introduced to re-establish Trade Promotion Authority. TPA, also known as "fast-track," ensures Congress can only vote up or down on a final trade deal without amending it.

The National Cattlemen's Beef Association urged Congress to renew TPA, citing that more than 12 million jobs depend on exports. NCBA President Bob McCan said the beef industry could see tariffs and other trade barriers eliminated in Pacific Rim countries.

"The governments of many of our competitors are actively engaged in negotiating trade agreements with growing consumer markets around the world," McCan said. "Unless the United States takes a similar aggressive approach to secure free trade agreements, we will lose market share; not due to the quality of our products, but because our products will be more expensive due to import tariffs. While the final terms of the agreement are still far from conclusion, TPP could give the United States a stronger foothold in the growing Asian and Pacific Rim markets."

The Trans-Pacific Partnership includes the U.S., Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

The National Pork Producers Council also "threw its support behind renewal of Trade Promotion Authority," the group said Monday.

"The U.S. pork industry is the poster child for expanded trade," said NPPC President Howard Hill, a pork producer from Cambridge, Iowa.

Hill noted that pork exports have increased 1,550% in value and 1,268% in volume since 1989, the year the U.S. implemented the FTA with Canada and started opening international markets for value-added agriculture products.

Last summer, leaders of the pork group were upset that Japan had put little on the table to expand access to U.S. pork. Recent developments, however, seem to have swayed NPPC to feel more confident that pork would see better access to Japanese consumers.

"Significant progress has been made with respect to Japan's market access offer on pork thanks to the hard work of U.S. trade officials and the strong support of the U.S. Congress," Hill said. "While NPPC is reserving judgment on a final TPP agreement, we believe it is imperative that Congress approve TPA as a signal to our trading partners that the U.S. is ready to finalize an agreement that expands U.S. trade and generates U.S. jobs."

The National Chicken Council also chimed in with similar statements. Chicken meat and other parts of the chicken accounted for roughly $5 billion in exports in 2014.

"NCC supports the move toward improved free and fair international trade," said NCC President Mike Brown. "With 20% of our production being exported to more than 100 countries, outside-the-border customers are becoming more and more important, especially for our dark meat parts."

Brown said congressional approval of TPA was necessary not only for the Pacific deal, but also the European trade deal, the Transatlantic Trade and Investment Partnership. "It is necessary to have TPA enacted because it will be essentially impossible to gain Congressional trade pact approval otherwise," Brown noted.

The National Turkey Federation also weighed in. "Trade Promotion Authority gives our trade negotiators the maximum flexibility to get a deal that expands turkey sales abroad and that benefit all American poultry and livestock producers. Congress retains the final say on whether a deal should be approved, and we urge the House and Senate to move swiftly to grant this authority," said Joel Brandenberger, president of the National Turkey Federation.

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

(AG)

Copyright 2015 DTN/The Progressive Farmer. All rights reserved.