TPA Legislation Introduced
Legislation would give president authority to pursue agreements that open markets for America’s farmers, ranchers and agribusiness.
Senators Orrin Hatch (R-Utah) and Ron Wyden (D-Ore.) on April 16 introduced Trade Promotion Authority (TPA) legislation that would establish concrete rules for international trade negotiations, boosting American exports and creating new economic opportunities, according to the National Cattlemen’s Beef Association (NCBA). President and Chugwater, Wyo., cattleman Philip Ellis urged Congress to act swiftly to pass the legislation.
“2014 was the largest year we’ve ever seen for U.S. beef exports, with over $7 billion in total sales,” said Ellis. “It is critical for our government to remove tariff and nontariff barriers to trade, to ensure our beef exports remain competitive across the world. TPA assures [that] the president and Congress will negotiate present and future trade agreements with common objectives and the understanding that any agreement will receive an up or down vote when presented to Congress.”
Past free-trade agreements negotiated under TPA have shown tremendous success for U.S. beef exports.
- The Korea-U.S. FTA will eliminate a 40% tariff rate;
- Colombia-U.S. FTA will eliminate an 80% tariff;
- Panama-U.S. FTA will eliminate a 30% tariff; and
- the Dominican Republic-Central America-U.S. FTA will eliminate a 15%-40% tariff.
That's all during the course of 15 years. Currently, the United States exports more than $1 billion in beef and variety meats to these markets, with greater opportunity as those tariffs continue to drop.
“TPA streamlines negotiations and strengthens our position at the bargaining table,” agreed American Farm Bureau Federation (AFBF) President Bob Stallman. “The growth of U.S. agriculture depends on our ability to compete in the international marketplace. We will cede potential markets and economic leadership to our competitors if we cannot negotiate and ratify trade agreements through TPA.”
Stallman said TPA is central to completing key trade negotiations already under way. “The U.S. is on the brink of completing its most ambitious trade agenda in years,” he said. “We stand to lose billions of dollars in future U.S. farm exports if Congress fails to pass these vitally important bills.”
Ag Secretary Tom Vilsak weighed in, saying he looks for quick action by Congress to provide the president with TPA.
“Last year, agricultural exports totaled more than $150 billion, and for many of our products, foreign markets represent half or more of total sales,” Vilsak said. “Those exports supported approximately 1 million U.S. jobs last year. The economy is strengthened in rural communities and throughout the entire country from the additional economic activity that flows from the expanded farm and processing business. Standing still is not an option.”
“The U.S. market is one of the most open markets in the world,” said NCBA’s 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.”
Editor’s Note: This article was compiled using new releases provided by USDA, NCBA and AFBF.