The details: how does TPP agreement impact US produce exports?

The Trans-Pacific Partnership (TPP) will provide significant new market opportunities for U.S. exporters, according to a release published by the USDA’s Foreign Agricultural Service. The agreement will promote economic growth in 11 countries across the Asia-Pacific region and expand demand for US food and agricultural products among nearly 500 million consumers outside the US, the release said.



Impact on fruit industry (non-citrus)
In 2014, US fruit exports amounted to $7.7 billion and 71.5 percent of that number can be attributed to the TPP region. To Canada, Mexico, Chile, Peru, Australia and Singapore, the US already exports duty-free under existing trade agreements. However, for the following countries the agreement is expected to increase exports:
  • Japan: tariffs on almost all fresh and processed fruits will be eliminated immediately. Tariffs on fresh apples will be eliminated within 11 years and on fresh cherries within 6 years.
  • Vietnam: Tariffs on fresh fruit eliminated within 4 years or less. Tariffs on processed fruit eliminated within 8 years.
  • Brunei: all tariffs eliminated immediately.
  • Malaysia: Tariffs eliminated immediately on processed fruits and fresh apples, cherries and pears. Tariffs on other fresh fruits eliminated within 10 years.
  • New Zealand: all tariffs eliminated immediately.
The US itself will immediately eliminate tariffs on fresh apples, cherries and pears. Tariffs on other fresh fruits will be eliminated within 10 years and processed fruits within 15 years.

This is a link to the fruit fact sheet. 

Impact on citrus fruit and juice industry
Last year, US citrus fruit and juice exports were $2.1 billion. A total of $1.2 billion was exported to the TPP region, which equals 57 percent. See below more in-depth details on tariff changes.
  • Japan: tariffs on oranges eliminated in 6-8 years.
  • Current tariffs on grapefruit (30 percent) and lemons (25 percent) eliminated in 3 years and on fresh oranges (27 percent) in 4 years. Tariffs on citrus juices, currently as high as 25 percent, eliminated in 5-8 years.
  • Brunei: All tariffs eliminated immediately.
  • Malaysia: Tariffs for oranges and citrus juices locked in at 0 percent. Tariffs on grapefruit and lemons eliminated immediately.
  • New Zealand: All tariffs eliminated immediately.
  • With Canada, Mexico, Chile, Peru, Australia and Singapore, the US already has free-trade agreements.
The US will eliminate its tariffs on fresh oranges, grapefruit and lemons - currently as high as 14.8%, and citrus juice, currently as high as 37.7% - within 10 years. Click here for the citrus fruit and juice fact sheet.

Impact on vegetable industry
US vegetable exports amounted to $5 billion last year and about three-quarters was exported to TPP countries. The following tariff eliminations are expected to support US exports.
  • Japan: tariffs for nearly all fresh and processed vegetables eliminated within 11 years.
  • Vietnam: tariffs currently as high as 40 percent will be eliminated within 11 years.
  • Brunei: all tariffs eliminated immediately.
  • Malaysia: tariffs, currently as high as 90 percent will be eliminated immediately.
  • New Zealand: all tariffs eliminated immediately.
The US will eliminate its tariffs, which are currently as high as 29.8 percent, within 10 years. A link to the vegetable fact sheet can be found here


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