The U.S. Trade Representative’s office said that the agreement would eliminate or significantly reduce tariffs on U.S. products and deter non-science based sanitary and phytosanitary barriers that have put American Agriculture at a disadvantage in TPP countries in the past.
President Obama said that TPP will enable sale of more products for agriculture. Currently over 18.000 taxes and tariffs on American products will fall and most of them even to zero. The US exports of agricultural exports to the TPP countries totaled $63 billion in 2014, 42% of the total agricultural products.
Vilsack said that agriculture is going to be a big winner with TPP, and overall it is estimated that US exports could increase to $130 billion making agriculture 9% of total exports. TPP will eliminate import taxes as high as 40% on U.S. poultry, 35% on soybeans and 40% on fruit exports. USDA has done an excellent job of compiling commodity benefits at www.fas.usda.gov/tpp-benefits-us-agricultural-products. For state-by-state benefits, visit www.fas.usda.gov/tpp-benefits-us-states.
The American Soybean Association said that the agreement will eliminate tariffs and other market access barriers and substantially increase access in remaining markets. They are optimistic that soybean products will fare well in the TPP agreement. In Japan, tariffs on soybean which is 13.2 yen/kg currently are eliminated within 6 years, 34% in Vietnam eliminated in 11 years and in Malaysia the 10% tariffs will be eliminated immediately.
Also, other products like corn and wheat will have duty free exports in the TPP countries like Vietnam, Malaysia and Japan in few years.