Description

The proposed Trans-Pacific Partnership (TPP) is a trade and investment agreement under nego-tiation by 12 countries in the Pacific Rim, including the United States. This report assesses the potential impacts of eliminating all agricultural and nonagricultural tariffs and tariff-rate quotas (TRQs) under a TPP agreement on the region's agriculture in 2025-the assumed end date of the pact's implementation-compared with baseline values for 2025 without a TPP. Cutting tariffs is only one of the many goals of the TPP negotiations, but it is an important one for agricultural trade. The value of intraregional agricultural trade in 2025 under a tariff-free, TRQ-free scenario is estimated to be 6 percent, or about $8.5 billion higher (in 2007 U.S. dollars) compared with baseline values. U.S. agricultural exports to the region will be 5 percent, or about $3 billion higher, and U.S. agricultural imports from the region in 2025 will be 2 percent, or $1 billion higher in value compared with the baseline.