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:
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.- 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.
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.