Consequences of Cancelling the TPP: for Farmers

The Trump effect on agriculture exports……it’s not good.

“This means that dozens of other countries now benefit from changes we persuaded Japan to make. And our farmers are about to lose out, big time.”

“Japan’s beef imports were already up 25 percent in the first two months of 2019 compared with a year earlier, as the Wall Street Journal recently reported. The biggest beneficiaries were Canada and New Zealand. This makes sense: As members of TPP 2.0, they have a huge price advantage. U.S. beef is tariffed at 38.5 percent, and TPP 2.0 countries’ beef is now at 26.6 percent, with further reductions slated for coming years.”

“Even before then, these other countries’ advantages will widen. If frozen beef imports surpass a certain threshold, as is expected soon, a “safeguard” tariff will automatically kick in and raise tariffs on  our  products — but  not TPP 2.0’s members’ — to 50 percent.”

Medicynical note: Moving on without us.

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