Where are we on trade negotiations outside China?

by | Dec 28, 2018 | 5 Ag Stories, News

Remember the Trans-Pacific Partnership (TPP)? The trade pact between nations around the Pacific Rim is in effect as of December 30th. This means one of our largest trading partners, Japan, is granting better access to our competitors. This is just one of the trade issues the United States is dealing with going into 2019.

The United States pulled out of the TPP pact after President Trump took office. Both the President and Hillary Clinton had pledged to back out during the campaign of 2016. So where does this leave us with the deal in effect on December 30th? Well, it means our competitors such as Canada, Australia, and New Zealand will have better market access to Japan. Of course, this doesn?t have to be a source of panic. The U.S. and Japan have pledged to build a bilateral trade agreement which will give the United States some of the many same TPP benefits with the island nation. Chief Ag Negotiator in the U.S. Trade Representative?s Office, Greg Doud says working through this deal is key for U.S. Agriculture.

However, discussions with the European Union (EU) aren?t going as well. The EU does not want to negotiate its differences of opinion on agriculture at this time. Greg Doud says Ag talks are a must in any trade pact with the 28-nation bloc.

As we roll into 2019, the differences in trade need to be settled for our Ag exports to find value in the global market again. Farmers are depending on solid trading relationships for their bottom line.