USDA Pushes Trans-Pacific Trade Pact, Arkansas Groups, Lawmakers On The Fence

The U.S. Department of Agriculture on Wednesday (Oct. 7) released a state-by-state analysis showing how the newly reached Trans-Pacific Partnership (TPP) agreement can boost the agriculture industry in Arkansas and rest of the country.

The series of fact sheets compiled by the USDA’s Foreign Agricultural Service (FAS) is part of the federal agency’s aggressive push this week to gain support for the historic trade pact, which will need the approval of the U.S. Congress to be completed.

On Monday, trade ministers from the U.S., Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam met in Atlanta and concluded round-the-clock negotiations for the TPP, which the USDA said accounted for 42% of U.S. agricultural exports worth $63 billion to the America. Immediately after the talks concluded, the USDA released statements from a roundup of leaders from across the U.S. agriculture and food sector that have expressed support and confidence in the newly reached trade pact.

Today’s missive from the USDA graphically depicts how each state and individual commodities stand to benefit from increased agricultural trade with the 11 other TPP countries. In Arkansas, the USDA boasted, the TPP agreement pact will help support more than 30,000 agri-related jobs across the state that generates export sales exceeding $4 billion each year. In particular, the USDA released a infographic showing how the Pacific trade deal will boost the export of the state’s top five products – soybean, rice, poultry, cotton and wheat.

“Increased demand for American agricultural products and expanded agricultural exports as a result of the Trans-Pacific Partnership agreement will support stronger commodity prices and increase farm income. Increased exports will support more good paying export-related jobs, further strengthening the rural economy,” Agriculture Secretary Tom Vilsack said. “All of this activity benefits rural communities and keeps American agriculture on the cutting edge of global commerce.”

Despite the USDA’s outreach, the Arkansas Farm Bureau seems to be still on the fence concerning the trade deal. Bureau President Randy Veach said Monday the organization was pleased at how the TPP talks had progressed, calling it a “challenging process.”

“TPP offers a rare opportunity to open markets around the Pacific Rim that have been previously restricted. We are hopeful the details of the agreement will bear that out,” said Veach, a member of the USDA/USTR trade advisory committee. “Almost all of the commodities we raise in Arkansas could experience some additional opportunities from this agreement.”

However, Veach said the state Farm Bureau has so far resisted supporting or opposing the TPP until it had a chance to review details and how it might affect Arkansas’ agriculture industry as a whole.

“Until we have had the opportunity to review those details for how it might impact Arkansas farmers and ranchers and the commodities we raise, though, it is premature to express support or opposition to the Trans Pacific Partnership,” Veach said. “Because of the passage of trade promotion authority, Congress has the opportunity to vote yes or no on this agreement.”

Arkansas’ Congressional delegation has been mostly silent on the Obama administration’s trans-Pacific trade deal, which has been lambasted by Democrats and Republicans and is expected to get tough scrutiny from both sides. This week, U.S. Rep. Bruce Westerman, R-Hot Springs, was the only Arkansas lawmaker in Washington, D.C., to issue a statement concerning the historic trade pact.

“I will be reviewing the final proposed trade deal over the coming months in order to determine whether the negotiators have listened to my input, to verify that the agreement would create new markets for Arkansas products, and to decide if it is in the best interest of the Fourth District, Arkansas and United States workers and economies,” he said.

So far, the Obama administration has received strong support from the business community, including Bentonville-based Wal-Mart Stores. Scott Price, CEO Walmart Asia, said the retail giant welcomed the conclusion of the TPP talks.

“TPP countries include some of the most robust economies in the Asia Pacific, which alone account for about 40% of world GDP and one third of world trade,” Price said in a statement.  “We believe this historic agreement will reduce the cost of goods and increase choice for our customers in the Asia-Pacific and the United States, and we look forward to reviewing the details of the agreement.”

In addition to Walmart, a number of other top Fortune 500 companies and industry trade groups this week have openly expressed their support for the 12-country trade pact that many say will create new opportunities abroad.

For example, Dennis Muilenburg, Boeing president and CEO, said the TPP agreement would support U.S. export growth in some of the world’s fast-growing markets.

However, some of the harshest criticism has come from the usually Democrat-friendly union supporters of the Obama administration. Leo Gerard, international president of the United Steelworkers (USW), said the TPP agreement threatens the future of production and employment.

“It compromises the so-called 21st century standards that were supposed to form the foundation for this agreement. It will deal a critical blow to workers and their standard of living in the United States,” Gerard said. “This TPP deal shouldn’t even be submitted to Congress and, if it is, it should be quickly rejected.”

If approved by Congress, the TPP negotiated in Atlanta will cut trade barriers and open up export markets for U.S. products across the globe. Congress must vote yes or no on the Obama administration-negotiated deal, but cannot amend it.