U.S. Trade Rep. Michael Froman came to Des Moines Thursday, July 14 to discuss the benefits to U.S. agriculture of the Trans-Pacific Partnership, a proposed trade agreement between the U.S. and 11 other countries. The TPP calls for free trade between these countries. Tariff reduction or elimination is a goal of free-trade agreements, so is removal of all nontariff barriers. The TPP includes Pacific Rim countries. Their economies are either developed or are rapidly developing.

PUSHING FOR FREE TRADE: Ag organizations are lobbying Congress hard in hopes of getting the Trans-Pacific Partnership trade agreement passed by the end of 2016. TPP calls for free trade among 12 different countries (the U.S. and 11 others) to boost U.S. exports.

Congress will likely debate TPP yet this year
Agriculture organizations in the U.S., including corn, soybeans, pork and beef producer groups, are lobbying Congress hard in hopes of getting the TPP passed before the end of this year. The other 11 countries involved in TPP are waiting to see what the U.S. does before moving TPP forward in their own countries. While the TPP is on hold here, there are other countries that are working on free-trade agreements with Japan and some of these other TPP partners.

Anti-trade groups are speaking out against the TPP. They say free trade agreements result in the U.S. losing manufacturing jobs here to overseas workers who provide a cheaper labor supply.

What’s at stake for Iowa in TPP trade agreement?
John Whitaker is the USDA Farm Service Agency state executive director in Iowa; and Bill Menner is the Iowa state director for USDA Rural Development. They authored an “Op-Ed” article and sent it to Wallaces Farmer magazine earlier this week, explaining what’s at stake for Iowa agriculture and the state’s economy in the TPP trade agreement, and why Congress should approve it. Here’s how Whitaker and Menner view the issue:

Exports of ag products are very important to Iowa
“If you are looking for a growth industry, check out Iowa's food and agricultural exports. The export of farm products alone contributes around $10 billion to Iowa's economy each year and the number of jobs supported by agricultural exports has been trending upward since the 1990s. Agricultural exports help support rural communities across the country, with each dollar of exports stimulating another $1.27 in business activity.

“Our nation's agricultural exports support jobs in transportation, processing, packaging and many more areas; roughly 80% of these jobs are in non-farm sectors. The benefits of trade for Iowa's rural farmers are clear with positive impacts rippling throughout the entire job market stimulating our national economy.

“Here in Iowa, we are accustomed to producing the best agricultural goods. Our producers keep Americans fed and clothed and fuel in our vehicles while contributing to the food security for nations across the globe. Their hard work is a symbol of where we come from, a reflection of our shared values, and an economic driver for our state's economy.

Ag exports are a consistent success story over the decades
“For the U.S. economy as a whole, agricultural exports represent a consistent success story through good times and challenges. Agricultural exports have grown much faster over the past decade than even manufacturing exports. In fact, over the past seven years, U.S. farmers and ranchers are responsible for exporting $1 trillion in food and agricultural goods to countries around the world.

“At USDA, we are working aggressively to maintain this historic momentum by expanding foreign markets to help drive demand for American-grown goods. We are leading more trade missions and generating more sales as a result than ever before. We have saved U.S. businesses billions of dollars by removing unfair barriers to trade.

“In 2015 alone, USDA resolved more than 150 trade-related issues involving U.S. agricultural exports valued at $2.4 billion. And we have worked to expand trade relations with many of the world's fastest-growing nations.

Demand for U.S. agricultural goods will continue to grow
“More simply, as the rest of the world continues to become more developed and populations grow, so does the demand for American agricultural exports.

That is why the Trans-Pacific Partnership trade agreement is so important to Iowa. The TPP is a 21st century trade agreement that helps to level the playing field for American businesses while ensuring the highest labor and environmental standards. U.S. trade with the 11 TPP countries accounted for 42% of U.S. agricultural exports in 2014, contributing $63 billion to the U.S. economy. Easier access to these markets with fewer taxes on our goods allows for even the smallest-scale producers to expand their reach.

“According to the American Farm Bureau, ratifying the TPP will boost annual net farm income in the United States by $4.4 billion. The TPP also removes 3,900 taxes on U.S. agricultural goods. Failure by Congress to pass the agreement, however, costs the U.S. economy a permanent loss of $94 billion each year.

TPP will help local products compete on a more level field
“With TPP, local products are able to compete on a more level playing field, reaching high-demand markets both at home and abroad. And, most important, TPP provides the United States an opportunity to help write the global rules on trade rather than nations like China. While China moves forward with its own trade deals that don't reflect our interests and our values, TPP promises to make a lasting contribution to the American economy by giving more Americans a fair shot, more higher-paying jobs, and households with paychecks that go further.

“Strong trade deals like TPP that meet our standards, reduce taxes and level the playing field for our businesses can power Iowa's economy for decades to come. Let's hope Congress gets the message.”

Author information:
Bill Menner was appointed as the USDA Rural Development state director in Iowa in July 2009. In his position he oversees state activities of the USDA mission area that provides funding to support housing opportunities, community-improvement projects, new energy uses and business development across rural America.

John Whitaker was named USDA Farm Service Agency state executive director in July 2009. “FSA is dedicated to achieving an economically and environmentally sound future for American agriculture,” says Whitaker.