An economist at Ohio State University says the Trans-Pacific Partnership (TPP) would increase U.S. access to four countries that currently do not have a free trade agreement with the U.S.
“These include most importantly Japan, but some smaller economies like Viet Nam and Malaysia, which are growing economies and will start importing just like the Chinese did,” said Dr. Ian Sheldon, the Andersons Professor of International Trade at Ohio State. “New Zealand is also one of those countries to which we get a free trade agreement, but I don’t see us exporting a huge amount to New Zealand just because New Zealand is already a very, very efficient agricultural exporter.”
He says in the case of Japan, 50 percent of U.S. agricultural exports will face zero tariffs if TPP is implemented. The deal has to be ratified by the U.S. and all participating countries.
The USDA’s Economic Research Service (ERS) estimates TPP would result in a nearly 7 percent increase in agricultural trade by 2025.
Source: www.brownfieldagnews.com