The proposed Trans-Pacific Partnership trade pact will create “significant export opportunities” for U.S. dairy products, said U.S. Trade Representative Michael Froman, and will not damage the sugar sector.
During a teleconference organized by the White House, Froman repeatedly cited TPP benefits for agriculture. When a reporter described the sugar and dairy sections of TPP as “basically a wash” between greater access to overseas markets while introducing additional competition at home, Froman said on dairy, “We believe we got a good balance.”
Dairy farmers will see new opportunities for exports “without worrying their incomes will go down,” said Froman. Australia will be allowed to ship more sugar to the United States but TPP will not undermine the U.S. sugar program, which assures a minimum price for sugar growers, he said.
Exports account for more than 20 percent of farm income. TPP nations buy 42 percent of U.S. farm exports.
A USDA summary said Japanese tariffs on U.S. beef, now ranging up to 50 percent, will fall to 9 percent ultimately. Japan also will establish a new duty-free quota for U.S. rice and eliminate most of its tariffs on pork.
Canada will expand its duty-free quota for U.S. cheese, said the USDA, while New Zealand would eliminate its tariffs on dairy. Japan would create new quotas for butter, milk powder, evaporated milk and condensed milk. Malaysia would eliminate most of its tariffs.