A new report says that while all member countries of the Trans Pacific Partnership stand to benefit from the trade agreement, the U.S. has the most to gain.
The report from the Peterson Institute for International Economics (PIIE) says the agreement will increase “annual real incomes” in the U.S. by $131 billion by 2030. Global figures for that same time frame show an increase of about $492 billion with sizable gains also projected for Japan, Malaysia and Vietnam.
The report says the TPP agreement, which was completed last October after years of negotiations, “appears to have met its two most important negotiating objectives,” benefiting member countries economically and developing rules for economic integration. However, the report also notes that the agreement “reflects inevitable compromises” among the 12 Pacific Rim countries at the negotiating table.
The American Soybean Association released a statement in response to this report, pointing specifically to the significant benefits of the TPP for the United States and 11 other nations in the agreement. According to the report, the TPP would boost U.S. exports by $357 billion annually in 2030.
The Peterson report also warns that delaying implementation by just one year would represent a $77 billion permanent loss to the U.S. economy by giving up gains that compound over time. Delay also would jeopardize other trade deals, such as the proposed Transatlantic Trade and Investment Partnership agreement with the European Union. ASA President and Delaware farmer Richard Wilkins referenced the report in a call on Congress to move forward with consideration of the agreement.
“The Peterson report only adds more evidence to what we already knew to be the case: TPP is an essential component to the success of American farmers overseas. With nearly a 10 percent increase in exports as soon as 2030, and more to come after that, the TPP lays the groundwork for sustained success for American farmers for years to come. The report also highlights the positives in TPP for our partner nations like Malaysia and Vietnam as well.
Remember these are big markets for American beans already, and the agreement will not only further expand our opportunities there, but also aid in the continued emergence of the rapidly developing markets along the Pacific Rim. As their buying power increases, so does the market for American meat, which in turn drives demand for soy meal here at home. We hope that House and Senate leadership will move quickly on the Trans-Pacific Partnership so that farmers across the country can see these benefits as soon as possible.”
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