The U.S. Business Coalition for Trans-Pacific Partnership hosted an event this week on Capitol Hill to highlight the importance of TPP negations, which the Coalition says will promote economic opportunities and competitiveness, the creation and retention of jobs, higher living standards, and the reduction of poverty across all TPP countries. Attendees of the event included U.S. Trade Representative Ron Kirk, Senate Finance Committee Chairman Max Baucus (D-MT) House Rules Committee Chairman David Dreier (R-CA), as well as Ambassadors or representatives from all the TPP partner countries. TPP represents an important opportunity for wheat, as eliminated tariffs and trade restrictions would help U.S. agriculture exports to increase in the quickly growing Pacific Rim. Japan, who is the United State’s largest importer of wheat, has also expressed interest in joining TPP discussions. To learn more about trade in the wheat industry visit www.wheatworld.org/trade. U.S. agriculture, MAP and FMD are key tools in making this a successful effort.”
MAP and FMD are highly successful, cost-effective public-private partnerships with a far-reaching economic impact, the coalition members said. The farmers, cooperatives and small businesses must first put up their own money to be eligible for MAP and FMD funds. With MAP, for example, estimated industry investment is now more than 60 percent of total annual export development spending, up from about 45 percent in 1996 and less than 30 percent in 1991.
The letter cited a recent study by IHS Global Insight finding that MAP and FMD are highly effective programs with a substantial return on investment. The USDA-commissioned study showed that increased MAP and FMD spending in market development since 2002 substantially increased U.S. export market share and increased U.S. agricultural export value by $6.1 billion per year. The study also found that export gains between 2002 and 2009 substantially increased U.S farm cash receipts and net income that, in turn, reduced U.S. domestic farm support payments and the net cost of farm programs by $54 million per year. Overall, the study showed, for every additional $1 expended by government and industry on market development during this period, U.S. food and agricultural exports increased by $35.
For more information on the MAP and FMD programs and their success, visit http://www.fas.usda.gov/programs.asp.