TTIP’s prospects affect meat, poultry trade
Story Date: 5/4/2016

 

Source: Lisa M. Keefe, MEATINGPLACE, 5/3/16


Speculation has been rampant since the release on Monday of leaked communications regarding the Transatlantic Trade and Investment Partnership (T-TIP), with opponents predicting the demise of the years-long negotiations and supporters brushing the leaks off as “a storm in a teacup.” 


The T-TIP would change nearly all of the complicated trading relationships between the U.S. and the EU, on products from autos to clothing to wine and Parma ham. In general, opponents of the agreement in Europe say the negotiations — which have been mostly conducted in secret — would sell out European restrictions on, for example, ag products such as meat from animals raised using hormones or beta-agonists. The EU restrictions have significantly limited the ability of most U.S. meat and poultry producers and processors to sell their products in Europe, while also protecting that industry in Europe, although its costs of production are high relatively to global benchmarks.


The survival or demise of the T-TIP negotiations is of some interest to U.S. meat processors, particularly further processors, although the EU has not been a major trading partner in recent decades, largely because of the trade restrictions that the T-TIP is intended to address.


Copa and Cogega — the EU organizations representing the full spectrum of the European ag industry, including livestock farmers and meat processors and distributors — supports the ongoing T-TIP negotiations. The group said in a February 2016 statement that the deal holds out prospects for more international market opportunities for the European ag industry than it does threats. 


However, while processed meat products are part of the negotiations over treatment of 97 percent of the goods traded between the regions, fresh meat and poultry are in an “other” category of 3 percent of the goods, considered especially “sensitive” to the European economy.


An analysis of the likely effects on trade in beef, in particular, are available here, penned by Alan Matthews, Professor Emeritus of European Agricultural Policy in the Department of Economics at Trinity College, Dublin, Ireland.


For its part, the U.S. Trade Representatives office released a statement that said, in part, “[T]he interpretations being given to these texts appear to be misleading at best and flat out wrong at worst. From the outset of trade negotiations with the EU, we have been clear that our goal is for T-TIP to promote economic growth, boost jobs, increase public participation and transparency in regulatory processes, and reflect our shared transatlantic values. … T-TIP will preserve, not undermine, our strong consumer, health, environmental standards, and position the U.S. and the EU to work together to push standards higher around the world."

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