President Obama traveled to the Agriculture Department headquarters on the national Mall to seek support for the Trans-Pacific Partnership trade agreement, one day after the pact was sealed and months before Congress will vote on it. “We are going to be talking not just to members of Congress but the American public and various constituencies, and governors, and mayors who are represented here about why this is good for their communities,” Obama said after meeting privately with 19 agriculture and business leaders. Three of them were from farm groups.
The 12-nation TPP covers 40 percent of the global economy; 42 percent of U.S. farm exports are shipped to member nations. With TPP, Obama told reporters at USDA, “we are knocking down barriers that are currently preventing American workers from selling in these countries and are preventing American workers from benefitting from those sales to the fastest-growing, most dynamic region in the world.”
It was the first time a president came to USDA headquarters since George W. Bush attended the swearing-in ceremony for Agriculture Secretary Ed Schafer in 2008, according to USDA.
Obama faces a “very difficult” challenge to win ratification, said Iowa Sen Charles Grassley during a teleconference. “The agricultural negotiations are going to drive support for the agreement if they (the results) are as good as dhe said.”
Agriculture Secretary Tom Vilsack told reporters “virtually every commodity group,” from livestock and dairy to grains would feel the benefit of reduction or elimination of tariffs and of preferential treatment for their products by importing nations.
“I think it’s fair to say agriculture is a winner in this agreement,” said Vilsack, although it may be a month before the final text is available to the public.
Canada and Japan will allow more dairy imports under TPP, said Vilsack, Over a decade, the two countries will open their markets to larger volumes of U.S. cheese, whole and skim milk powder, and milk, he said. At the same time, New Zealand will gain new access to U.S. customers. “It is give and take,” said Vilsack. “On balance, I think we’re going to be okay.”
The National Farmers Union, the second-largest U.S. farm group, encourages lawmakers to vote against TPP because it does not prevent currency manipulation. Vilsack said the U.S. agriculture sector will benefit from TPP regardless and there are other venues for the United States to challenge unfair exchange rates.
A Grassley aide estimated it would be early 2016 before the administration can submit TPP for congressional review, with a vote likely in March or April. “It’s much harder to get things done when you’re in a presidential election year,” said Grassley.