Exploring Your Trans-Pacific Partners “From Colorado Farms to Pacific Tables” Thad Lively Sr. Vice President, Trade Access U.S. Meat Export Federation

12 offices 6 representatitves

Value of the TPP to the U.S. Beef and Pork Industries Last year, we exported $6.3 billion of beef and $5.6 billion of pork. Of that, $3.4 billion (54%) of beef exports went to TPP countries and $3.9 billion (70%) of pork exports. So the TPP countries are very important markets for us. We already have FTAs with six of the TPP countries, accounting for 61% of beef exports and 58% of pork exports to all TPP countries. Most of our remaining exports to TPP countries go to Japan. So it’s clear that Japan is the TPP country where we stand to make the biggest gains. Accordingly, we judge the value of the TPP largely in terms of the market access gains it will bring for us in Japan. Total 2015 Beef Exports: $6.3 billion Total 2015 Pork Exports: $5.6 billion

Japan Market Access Provisions Beef Significant reductions or complete elimination of all tariffs Safeguards during implementation period Japan-Australia EPA – Australian tariff advantage eliminated by implementation of TPP Pork Gate price preserved, other tariffs eliminated Japan-EU EPA being negotiated 2015 Exports to Japan Beef: $1.3 billion ($1.6 billion) Pork: $1.6 billion ($1.9 billion)

Other Provisions of the Agreement NAFTA Effects Mexico: Elimination of all beef tariffs Canada: Elimination of out-of-quota duties under beef TRQ SPS Chapter Elaborates on WTO provisions Technical consultations mechanism Dispute settlement 2015 Exports Beef: $6.3 billion ($7.1 billion) Pork: $5.6 billion ($6.7 billion)

Conclusions Opportunity for significant expansion in access to Japan, our most important export market Opportunity to maintain parity with our two largest competitors in Japan Strengthened means of resolving SPS disputes with other TPP countries Loss of preferential access to Mexico and Canada