Potato growers in Washington State are looking to benefit from the passage of the Trans-Pacific Partnership (TPP) trade agreement.
The Washington State Potato Commission (WSPC) has said it supports the agreement, which would establish new free trade regulations between the U.S. and 11 countries in Asia, North America, South America and Australia. The pact is aimed at developing economic ties between the countries by cutting tariffs and fostering trade.
About 90 percent of all potatoes grown in Washington are exported to international and domestic markets. The potato industry contributes about $4.6 billion to the state’s economy annually, according to the commission.
Opening up new trade markets and reducing tariffs would allow Washington growers to better compete with European growers, who receive preferential market access, said Matt Harris, assistant executive director of the WSPC.
“Reducing tariffs on potatoes exported to the TPP region will remove a very large competitive disadvantage facing Washington’s potato industry and allow farmers to compete in the global marketplace,” said Harris.
In 2014, the state exported more than $200 million in frozen potato products to Japan under an applied 8.5 percent tariff. Harris said the Trans-Pacific Partnership would eventually eliminate that tariff and increase the competitiveness of products from Washington.
Chris Voigt, the commission’s executive director, said the agreement would be a “big win” for farmers.
“We need fair trade,” Voigt said. “We can be more competitive in a global market when tariffs are eliminated and other countries are held to higher environmental and labor standards like we are here in the United States.”
Congress has yet to approve the Trans-Pacific Partnership.
Source: iFiber One News