Governor Pete Ricketts and leaders of many of the state’s agricultural groups are calling for passage of the Trans Pacific Partnership trade agreement before Congress.
Governor Ricketts says one of the major components of the TPP is the reduction in tariffs and its resulting benefits for Nebraska.
“The current tariff that Japan places on our beef products going over to Japan is about 38%,” Ricketts says. “If we were to pass TPP, that would come down to 9%. In countries like Malaysia and Vietnam, we’ve seen tariffs dropping to zero. This is a huge deal for us to be able to expand those relationships.”
Ricketts says TPP also means more money and more jobs for Nebraska.
“Passage of TPP would increase the annual cash receipts in Nebraska by $378-million and add an additional 1,730 jobs to Nebraska’s economy,” the governor says. “Particularly important with passage of TPP is a reduction in trade barriers on our principal agricultural products which is vital for us being competitive in the marketplace.”
The Nebraska Farm Bureau did an economic analysis of the TPP using Nebraska’s top five commodities: beef, pork, corn, soybeans and wheat.
The Farm Bureau’s senior economist Jay Rempe says the results showed where the trade deal would have the biggest impact.
“Cuming County would benefit the most from TPP, followed by Custer County, Platte, Dawson and Lincoln County. That’s just using those five commodities. It just shows the magnitude of the benefits.”
The Farm Bureau’s economic analysis also showed that virtually every county in the state would gain from passage of TPP.
By Jerry Oster, WNAX, Yankton