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White House Study Examines Failure of TPP Passage on U.S. Businesses

Wednesday, November 9, 2016

(North American Meat Institute)

The White House Council of Economic Advisers last week released a study warning Congress about the dangers of failing to pass the Trans-Pacific Partnership (TPP) trade agreement, stating that millions of U.S. jobs could be at risk if the competing Regional Comprehensive Economic Partnership (RCEP) pact, led by China, is enacted. China is currently negotiating RCEP with 16 Asia-Pacific Countries, seven of which are also signatories of TPP. By reducing or eliminating tariffs, RCEP would significantly advantage Chinese companies, workers and products in major Asian markets. Specifically, 35 American industries - including the meat and poultry industry - that export a combined $5.3 billion to Japan would see an erosion of their market position compared with Chinese competitors, according to the study. The impact is especially detrimental for U.S. beef, which faces a 38.5 percent tariff in Japan, and is at risk of losing a substantial share of the Japanese market to Chinese competitors if RCEP is ratified without enacting TPP.

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