4/11/2016 12:00:00 AM
Iowa Cattlemen Urge Passing of Trans-Pacific Partnership
Washington, DC - Several Iowa Cattlemen’s Association (ICA) leaders and staff members are headed to our nation’s capital this week to meet with legislators on behalf of Iowa’s cattle producers. A key issue that will be discussed is the Trans Pacific Partnership, a trade agreement that stands to benefit all of agriculture, but especially the beef industry.
The Trans Pacific Partnership (TPP) was signed by 12 countries on the Pacific Rim including Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and the United States on Oct. 12, 2015. TPP will provide a platform for U.S. exports in a region that includes some of the world’s most robust economies, representing nearly 40 percent of global GDP.
TPP will reduce tariffs and level the competitive playing field for US beef exports to key international markets. In particular, beef’s largest export market, Japan, will see a tariff reduction from 38.5% to 9% over the next 15 years. Currently, U.S. beef is competing with Australian beef, which has an 11 percent tariff advantage into Japan. TPP will help U.S. beef regain over $100 million in additional beef sales that have been lost to Australian beef.
Beef exports currently add more than $280 to each head of cattle sold in the U.S. Additional foreign marketing opportunities will allow the U.S. to not only maintain current demand, but potentially add more value to asking price of a fed steer long term.
ICA joins the National Cattlemen’s Beef Association and 225 other food and agricultural organizations calling on members of Congress for a swift vote on TPP. “Passing TPP is vital to a stable and profitable future for our cattle producers,” says ICA president Phil Reemtsma. “We urge all of Iowa’s delegation to support the agreement.”
About the Iowa Cattlemen's Association: The Iowa Cattlemen’s Association represents more than 10,000 beef-producing families and associated companies dedicated to the future of Iowa’s beef industry. ICA’s mission is “Grow Iowa’s beef business through advocacy, leadership and education.”