December 31,2018-
American farmers suffer as Trans Pacific Partnership goes into effect without US
The trade war is already impacting many US grown crops and now America farms face a new problem as a huge Pacific trade pact goes into effect without US participation.
CNBC reports that the Comprehensive and Progressive Agreement for Trans-Pacific Pacific Partnership was ratified by seven of its member countries on Sunday. That includes Australia, Canada, Japan, Mexico, New Zealand, Singapore and Vietnam, with Brunei, Chile, Malaysia and Peru — soon to follow.
President Trump had bowed out of any plan to join the rest of these countries.
Products traded to Japan within the pact countries will now be cheaper than US producers can match. Consider beef says CNBC.
Japan is the “top market for U.S. beef, but Australia’s products could now take over America’s spot since foreign beef tariffs in Japan will be cut by 27.5 percent for Australian producers under the CPTPP, The National Cattlemen’s Beef Association has warned.
“The US beef industry is at risk of losing significant market share in Japan unless immediate action is taken to level the playing field,” Kevin Kester, the association’s president, said in a statement earlier this month.