US Makes Progress in TPP Ag Talks, But Japan, Canada Remain Obstacles, Says Administration
The Obama administration continues to negotiate Trans-Pacific Partnership (TPP) agricultural access for Japanese and Canadian markets, but administration trade officials have made “great progress” in eliminating Vietnamese and Malaysia agricultural tariffs that range from 20-50 percent, said U.S. Trade Representative (USTR) Michael Froman and Agriculture Secretary Tom Vilsack in a joint radio broadcast disseminated to rural stations throughout the country on March 7. The TPP agreement can help build on Fiscal Year 2013 record exports for U.S. agriculture (here), said Vilsack, according to a USTR release.
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“We’re on track this year to have another record year. The first quarter of the fiscal year has outpaced even last year’s record year, so very important for us to focus on exports, not just to stabilize farm income, but also because nearly 1 million jobs are supported as a result of agricultural trade,” said Vilsack. “The countries that are currently negotiating in that trade agreement represent 39 percent of global gross domestic product, but they represent 42 percent of our current exports. So it is a very important opportunity for us.” Failure to seal the TPP agreement will enable other countries in the region to negotiate without the U.S., effectively limiting U.S. market access to those countries, said Vilsack.
USTR Froman declined to target President Barack Obama’s April trip to Asia for completion of TPP negotiations. Obama will visit TPP participant nations Japan and Malaysia, along with the Philippines and South Korea (see 14021222). The U.S. is focused solely on “substance,” and will not endorse a deal that lacks additional Japanese and Canadian concessions on agriculture access, said Froman. Agricultural market access has emerged as an impediment to the conclusion of negotiations, but analysts say there remains a host of unresolved issues (see 14022504).