Farm Groups React to Death of Pacific Trade Deal

President Trump formally abandoned the Trans-Pacific Partnership (TPP) last week, pulling away from Asia and scrapping his predecessor’s most significant trade deal.

The president also signed an executive order stating his intention to renegotiate the 1994 free trade agreement between the United States, Canada and Mexico known, which is known as NAFTA, or the North American Free Trade Agreement.

The president’s withdrawal from the Asian-Pacific trade pact amounted to a drastic reversal of decades of economic policy in which presidents of both parties have lowered trade barriers and expanded ties around the world. Although candidates have often criticized trade deals on the campaign trail, those who made it to the White House, including President Obama, ended up extending their reach.

“We’ve been talking about this for a long time,” Trump said as he signed a document formalizing his decision. The withdrawal is a “great thing for the American worker.”

The Obama administration arduously negotiated the Pacific trade pact over eight years. He and his Republican allies argued that the pact would open growing foreign markets to U.S. businesses.

Segments of U.S. agriculture expressed concern.

American Farm Bureau Federation President Zippy Duvall said the organization he leads viewed the TPP as a positive for agriculture.

“With this decision, it is critical that the new administration begin work immediately to do all it can to develop new markets for U.S. agricultural goods and to protect and advance U.S. agricultural interests in the critical Asia-Pacific region,” Duvall said.

American Soybean Association President Ron Moore pointed out the high stakes for soybean farmers and urged the Trump administration to immediately announce how it intends to engage and expand market access in the Asia-Pacific region.

The pact represented 40 percent of the world’s gross domestic product (GDP), and according to the Peterson Institute, would have increased overall U.S. exports by $357 billion by 2030.

Sources: New York Times, Western Farm Press, CNBC