Stockgrowers Supports Senate Passage of Trade Promotion Authority

Stockgrowers Supports Senate Passage of Trade Promotion Authority

On Wednesday, June 24, the U.S. Senate passed Trade Promotion Authority Act, sending H.R. 2146 to the President’s desk by a vote of 60-38. Montana Stockgrowers is supportive of this legislation, which will allow the President greater authority to negotiate international trade agreements, which is important to many of our state’s agricultural products.

“There was a time when the largest part of our economic activity was domestic, but now our future depends on our ability to be globally competitive,” says Errol Rice, MSGA Executive Vice President. “TPA is key to accessing the additional demand from the 96% of consumers that live outside the United States.”

According to Michael Froman, U.S. Trade Ambassador in an interview with The Wall Street Journal, the average tariff in TPP countries is three to four times as high as in the U.S, which equates to 70% on autos, 50% on machinery, 35% on chemical and 50% on beef. A successful TPP agreement will reduce these tariffs, which in turn creates more economic opportunity for our U.S. cattle market.

Since 1974, Congress has enacted TPA legislation that gives the President guidelines on negotiating trade agreements while giving Congress the final up or down vote. MSGA has been working very hard to ensure that agriculture and business has the balance of power to get TPA reauthorized.

Phillip Ellis, President of National Cattlemen’s Beef Association (NCBA), hails the final passage, noting the importance of trade and export markets to the value of U.S. cattle.

“Cattlemen and women have seen tremendous value in trade, exporting over $7.1 billion worth of U.S. beef in 2014, which alone accounts for over $350 in added value per head of cattle in the United States,” says Ellis. “This value is not just from increased demand, but also from adding value to variety meats that have very limited value here at home.”

Ellis continues, “As the demand for U.S. beef continues to grow around the world, the future success of the beef industry rests in our ability to meet foreign demand without inference of tariff and non-tariff trade barriers. With TPA passed, the U.S. can focus on finalizing trade agreements like the Trans-Pacific Partnership that will give us greater access to consumers throughout the Pacific Rim.”

Montana Stockgrowers appreciates the support of Senator Daines and Congressman Zinke in supporting greater access to international trade markets, which improves demand and support for products grown and raised on farms and ranches across Montana and the United States.