The U.S.’s top agricultural trade negotiator said Friday that California farmers could reap tens of millions of dollars in export business under a 12-country trade agreement that awaits congressional approval.
Ambassador Darci Vetter, chief agricultural negotiator for the Office of the U.S. Trade Representative, met with members of the Fresno Chamber of Commerce to discuss the Trans-Pacific Partnership, or TPP.
Vetter said the agreement provides an unprecedented opportunity for farmers in the San Joaquin Valley.
The agreement involves Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and the United States.
Digital Access for only $0.99
For the most comprehensive local coverage, subscribe today.
#ReadLocal
As part of the agreement, tariffs on many of the Valley’s top crops would be lowered or completely eliminated. Growers of almonds, walnuts, pistachios, pecans, citrus, tree fruit, dairy, vegetables (fresh and processed) and beef would be affected by lower tariffs.
The American Farm Bureau Federation estimates that California farmers of fruits and nuts could generate $562 million in sales, while dairy producers could see $53 million in added revenue.
For beef producers, the trade agreement opens the doors to Japan, one of the most protected markets for U.S. beef. Sales could produce nearly $50 million.
“We have never had this type of access,” Vetter said.
Also important to California farmers is the emerging economies of Vietnam and Malaysia. As their middle class grows, so does spending power for fresh fruits and vegetables, dairy products and poultry.
Vetter said the Vietnamese have increased their consumption of cheese, growing by double digits over the past several years.
The challenge Vetter and other trade officials see is convincing Congress to vote on the package before the end of the year. While Vetter is hopeful the agreement will come to a vote this year, there also is a sense of urgency.
Nothing prohibits the TPP partners from signing trade agreements with other countries. Japan has negotiated a trade agreement with Australia, giving the Australians a 10 percent tariff advantage over the U.S.
“Once the TPP goes into effect we will be back on a level playing field,” Vetter said. “It is costly, the longer we wait.”
Fresno County Agricultural Commissioner Les Wright said international trade can be a minefield when political disputes arise.
“And ag is generally the loser in political disputes,” Wright said.
Vetter assured Wright that the agreement includes protections against banning U.S. products for no specific reason. Countries with an ax to grind against the U.S. sometimes will reject loads of fresh fruit or vegetables claiming it has an invasive insect or disease.
“If action is taken it must be done of a scientific reason,” Vetter said.
Robert Rodriguez: 559-441-6327, @FresnoBeeBob
Comments