Japan and Vietnam could be sweet spots for US beef under TPP
The US Department of Agriculture (USDA) and the US Meat Export Federation (USMEF) have expressed their happiness about the signing of the Trans-Pacific Partnership (TPP) between the US and 11 countries, which should significantly lower tariffs.
Thad Lively, US Meat Export Federation (USMEF) vice-president for trade access, said because of existing trade agreements with TPP countries, the largest potential market gains are in Japan and Vietnam.
Japan's beef tariff, currently as high as 50%, will be reduced to 9%. Japan will eliminate duties on 75% of tariff lines, including processed beef products. Vietnam will eliminate tariffs and Malaysia will lock tariffs in at 0%.
The organisation said in a statement: “We look forward to examining the red meat trade provisions agreed to in Atlanta and discussing them in detail with USMEF members.”
Agriculture secretary Tom Vilsack described the agreement as creating a “more level playing field in trade for American farmers”.
Countries in the TPP account for 42% of US agricultural exports, totalling $63 billion.
Mr Vilsack said: "Increased exports under TPP will create more good paying export-related jobs, further strengthening the rural economy.”
The 12 countries that make up the TPP are the US, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Full terms have still to be negotiated within the countries.
