Trans Pacific Partnership Could Add $300 Million in Dairy Exports
A new report by the USDA’s Office of the Chief Economist shows continued growth of the U.S. dairy sector is largely contingent on trade. The report suggests that the Trans-Pacific Partnership (TPP) could create an additional $150 to $300 million in annual U.S. dairy exports.
Free trade agreements have contributed to the growth in U.S. dairy exports and have helped to address tariff and nontariff barriers that disadvantage U.S. products in overseas markets. U.S. dairy exports to free trade agreement partners grew from $690 million in the year prior to activation of each agreement to $2.8 billion in 2015, driven by lower trade barriers and increased U.S. competitiveness. The American Farm Bureau predicts a total addition of more than $4.4 billion in net income for U.S. farmers should TPP pass.
While virtually every agriculture group support TPP passage, lawmakers continue to debate. President Obama favors the TPP agreement and farmers hope that the White House can convince Congress to arrive a solution even though Republicans want changes, Democrats oppose it and neither presidential candidate seems in favor.
More information on TPP can be found here