Asia-Pacific Market Access

NPPC’s Position

NPPC supports joining the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), which would eliminate tariff and non-tariff barriers, significantly boosting U.S. pork exports and creating American jobs.

 

While the U.S. government recently announced it would begin negotiations on agricultural sanitary and phytosanitary issues with Asian countries through the Indo-Pacific Economic Framework (IPEF), the trade deal does not go far enough in addressing market disparities.

 

NPPC urges the Biden administration to broaden negotiations to include agricultural market access.

Background

The U.S. pork industry is the most competitive in the world and is well-positioned to capitalize on growth opportunities in the Asia-Pacific region, the fastest-growing economic region in the world. Over the past 10 years, on average, the United States has been the top pork-exporting country in the world, sending $8.1 billion worth of pork to more than 100 countries in 2021. Exports added nearly $63, representing more than 30% of the $194 average value of a hog, to the price producers received for every U.S. hog marketed in 2021.

But U.S. exports to Asia-Pacific nations are suppressed by tariff and non-tariff barriers that would be eliminated through successful free trade agreement (FTA) negotiations.

Unless it negotiates new or expands existing FTAs with countries in the Asia-Pacific, the United States will lose market share in the region. Joining the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) would eliminate tariff and non-tariff barriers, significantly boosting U.S. pork exports and creating American jobs. The 11-member CPTPP – Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam – has 500 million consumers and $13.5 trillion of GDP. At least six other countries, including China, South Korea and Taiwan, have applied to join or expressed interest in joining the CPTPP.

The U.S. government will also begin negotiations on an Indo-Pacific Economic Framework, to strengthen partnerships in the region. Agricultural Sanitary and Phytosanitary issues will be included in discussions, but market disparities will not.

Fast Facts

$8.1 Billion

worth of U.S. pork was exported to more than 100 countries in 2021, and over the past 12 years, the United States, on average, has been the top pork-exporting country in the world.

500 million

consumers and $13.5 trillion of GDP are part of the CPTPP countries. The IPEF could have 15 member countries and more than 1.5 billion consumers.

Joining the CPTPP would put the United States on a level playing field with other pork traders, such the EU and Russia, that already have FTAs with the 11 Asia-Pacific countries.

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