How the Trans-Pacific Partnership will benefit U.S. beef

An article in Beef (November 2, 2015) titled “How the Trans-Pacific Partnership will benefit U.S. beef” (http://beefmagazine.com/beef-exports/how-trans-pacific-partnership-will-benefit-us-beef) describes the benefits that the TPP agreement will provide to the U.S. beef industry. The United States already had free trade agreements with Canada, Mexico, Australia, Peru, Chile, and Singapore. Therefore, the greatest advantage of the agreement represents the inclusion of Japan and Vietnam in this commercial trade deal. Even though Japan is leading the market for the U.S beef exports, the North American country has been in significant disadvantage in comparison to Australia. The Japan Australia Economic Partnership Agreement lowered the import tariffs to 28.5% for Australia, while the tariff rates for U.S. were 38.5%. Thanks to the TPP the U.S tariff will be cut to only 9% in 16 years. How will Australia react to the future market conditions? Will the Japan Australia Economic Partnership Agreement reduce the Australian tariffs in order to maintain Australia’s current advantage?

 

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