Posts Tagged: TPP
California farmers could have reaped substantial profits if the 12-country Trans-Pacific Partnership had become law, reported Robert Rodriguez in the Fresno Bee, but President Trump pulled the U.S. out of the deal.
According to the American Farm Bureau, California fruit and nut producers could have made $562 million in sales through lower tariffs and the elimination of tariffs. Dairy producers could have made $53 million in additional revenue.
Rodriguez spoke with Daniel Sumner, director of the UC Agriculture and Natural Resources' Agricultural Issues Center. Sumner said an outcome of Trump's decision may be for the U.S. to negotiate individual deals with Pacific nations.
"Vietnam could prove to be very useful," Sumner said. In Vietnam, a growing middle class is making the country a more attractive destination for California agricultural products.
Trump also promised during the campaign to renegotiate the North American Free Trade Agreement (NAFTA), which Sumner said could prove difficult because Canada and Mexico are key California trade partners.
"When you unilaterally open a trade agreement that has been successful, it can be very scary," Sumner said. "It is a huge market for California."
Although President-elect Donald Trump repeatedly said he was against the proposed Trans-Pacific Partnership (TPP) during the presidential campaign, a UC Agriculture and Natural Resources expert says he may moderate his position once he is in office, reported Julia Mitric on Capital Public Radio.
"The Trans-Pacific Partnership is an attack on America's business. It does not stop Japan's currency manipulation. This is a bad deal," Trump was quoted in a 2015 article on CNN.com. TPP was negotiated by the Obama Administration, but is stalled in Congress.
Director of the UC ANR Agricultural Issues Center, Daniel Sumner, said Trump may want to put his own stamp on the deal, and not stop it altogether.
"I can imagine President Trump asking for a delay on that until he renegotiates parts of it," Sumner said. "And if he can renegotiate what he considers a better deal, great, and he may well be very instrumental in getting such a thing through Congress."
Paul Wenger, president of the California Farm Bureau Federation, was also quoted in the story. He predicted Trump will consider the merits of TPP.
"If he's such a good businessman, he will see this is a good deal," Wenger said.
Sumner added, "When there's trade, both sides benefit. Otherwise you don't trade."
KTVU TV in San Francisco. A vote on the deal is expected in Congress next summer, but may be delayed until after the 2016 election.
If passed, the TPP would open up ag trade with countries like Vietnam, Japan, Australia and Malasia, who are clamoring for California fruit, vegetables, nuts and wine. China is not part of the proposed trade deal.
Wayne's story featured clips from a lengthy interview with the director of the UC Agriculture and Natural Resources (UC ANR) Agricultural Issues Center Dan Sumner, who explained why Pacific rim countries want to purchase California agricultural products.
"We're good at it," Sumner said. "They want our stuff. The governments get in the way. The more we can get the governmental barriers out of the way, the more their consumers can take our stuff."
The vote last month gave the president the ability to "fast-track" negotiations with the Pacific Rim countries. Congress can still reject the deal.
Sumner said it is a shame that the $9 billion dairy industry was left out of the TPP.
"Asia and other Pacific rim countries want our products," he said. "We left some barriers in place that should have come down further."
Sumner said California farmers and their allies are pushing to get TPP approved.