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Ag coalition calls for TPP without Japan

Five U.S. agriculture groups — the National Pork Producers Council, the International Dairy Foods Association, the National Association of Wheat Growers, the USA Rice Federation and the U.S. Wheat Association today called on the Obama administration to conclude the Trans-Pacific Partnership (TPP) negotiations without Japan unless that nation agrees to provide significant market access for the United States.

“For U.S. pork, that means elimination of Japan's gate price system and all tariffs,” NPPC said.

The TPP is a regional negotiation that includes the United States, Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, but Japan is regarded as the market of greatest interest to U.S. agriculture.

The groups noted that according to media reports from the recent TPP trade ministerial meeting in Singapore, Japanese Minister of the Economy Akira Amari said Japan will not abolish tariffs in the agricultural sectors it considers “sacred” — dairy, sugar, rice, beef, pork, wheat and barley.

Inside U.S. Trade also reported on May 22 that the key outcome of President Barack Obama’s visit to Japan last month, that U.S. officials have touted as a “breakthrough” in bilateral trade talks, consisted of the United States dropping its demand that Japan eliminate all tariffs on beef and pork in a TPP deal.

Obama personally delivered the message to Japanese Prime Minister Shinzo Abe that the U.S. would not insist on tariff elimination for these two sensitive products in TPP, Inside U.S. Trade said.

“The U.S. pork industry is very disappointed that Japan continues to refuse to eliminate tariff and non-tariff barriers to trade,” said NPPC President Howard Hill, a pork producer from Cambridge, Iowa.

“A country can't shield its primary agricultural products from competition and still claim to be committed to a high-standard agreement that liberalizes essentially all goods,” Hill said.

“Allowing Japan to exempt products from going to a zero tariff and preserving the gate price on pork sets a horrible precedent,” Hill said. “Other TPP countries may demand similar treatment, which could jeopardize the entire agreement, and that precedent would make it much harder to obtain a good outcome for pork and other agricultural products in future trade deals.”

“U.S. negotiators still have a chance to push Japan to provide meaningful agricultural market access in the agreement,” the groups said in a joint statement.

“Failing that, the alternative is suspending negotiations with Japan for now and concluding a truly comprehensive agreement with those TPP partners that are willing to meet the originally contemplated level of ambition. It is a big step but one that will be justified if Japan continues to refuse to open its agricultural sector to meaningful competition.”