Dr. Vincent Amanor-Boadu

(Vincent) The Trade Promotional Authority gives the President the authority to negotiate international trade treaties and bring it back to Congress to vote up or down on it. And the reason is that, it’s extremely difficult for the U.S. government to negotiate with international partners in a way that allows Congress to make the decision as the end negotiator. So this is something all presidents have always got, to allow them to negotiate another U.S. Trade Agreement, NAFTA, the Central American Free Trade Agreement, the Dominican Republic Free Trade Agreement and a host of others. So, it was very critical for the President if he was going to be able to negotiate in good faith, to be able to get this authority from Congress. And what it does is say, once the agreement is reached with the partners, the President brings the agreement to Congress, Congress looks at it and says, it’s good, yea, go forward, or we don’t like it, and that’s it, they cannot make any amendment. For us in the United States the majority of the countries in the TPP are countries we are already doing business with. The TPP countries currently control about 40 percent of global trade. The critical issue is that the existing trade relations does not make the outcome that huge, except Japan still has very high tariffs on some of its agricultural products, beef being one of them, which is very important to us here in Kansas. You have countries like Vietnam and Malaysia who have some relatively high tariff rate quarters. So the under quarter tariffs are low, but once you go over quota, it becomes extremely high on products like corn and soy and feedstock, right? So, being able to put this agreement together allows us now to focus on negotiating the reductions and eliminations in those tariffs rates, which enhances our competitiveness of our ranches and farmers. I am very confident that when it comes to production agriculture, it’s extremely difficult for anybody to beat U.S. farmers. The problem we have in exporting, in terms of our lack of competitiveness comes on the tariff side. The biggest advantage would be those high tariff and high tariff rate quota products. And a lot of it are corn, soy, beef, hide, feedstock that we export from here. And those are the top five exports, agricultural exports from Kansas. And so it becomes very important to us to get these tariffs right.

No Comments Yet.

Leave a reply

You must be logged in to post a comment.