Trade is a game of numbers and agreements. If the United States? competitors can get an advantage on tariffs and duties, it will make it hard for our products to compete. In some countries like Japan, we may be able to get our own bilateral deals. However, in countries like Vietnam, the price structure is much more sensitive, and we will have stiff competition.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) entered into force Dec. 30 for the six countries (Japan, Mexico, Singapore, Canada, New Zealand, and Australia) that ratified the agreement by the end of October.
Vietnam ratified CPTPP in mid-November, so its implementation of the agreement began on Monday, Jan. 14. This means our competitors for pork and beef will have excellent access to the markets. U.S. Meat Export Federation?s (USMEF) Erin Borror says while Australia and New Zealand already had duty-free agreements for beef shipments to Vietnam, the new trade agreement gives Canada and Mexico a foothold into that market as well.
Our North American neighbors are also going to enjoy the benefits of marketing their pork in Vietnam, thanks to CPTPP.
The bottom line is if the United States is going to pull out of multilateral trade negotiations, then we need to move on bilateral trade, so we don?t lose these growing and sensitive markets to our competitors.
