Trade pact push draws state views

WASHINGTON -- The White House stated its case Thursday for passage of the Trans-Pacific Partnership, saying the trade agreement would increase U.S. exports, lower foreign tariffs and open 11 overseas countries to more American goods and products.

That message was echoed by officials from Wal-Mart and Tyson, two companies that do business across the Pacific.

But members of the Arkansas congressional delegation and some Arkansas industry officials said they need more time to study the massive document to determine its impact. A labor union official said the proposal would hurt American workers.

The Obama administration released the full proposal -- more than 5,000 pages -- last week.

U.S. Commerce Secretary Penny Pritzker told reporters that the trade pact would eliminate tariffs on more than 18,000 U.S. products, while strengthening labor and environmental standards.

In 2014, U.S. businesses sold more than $726 billion in goods to the 11 nations the U.S. would be in partnership with: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

"This deal will create more opportunities for American companies of all sizes to sell more 'Made in America' products into some of the fastest-growing markets in the world. In doing so, it will lead to economic growth and job creation here at home," Pritzker said.

During a call with reporters, U.S. Trade Representative Michael Froman stressed that 95 percent of the world's consumers live outside of the United States. And with economies in several Asian nations booming, opportunities there are going to expand.

"The Asia-Pacific region, in particular, is going to be home to two-thirds of the world's middle class by 2030, and we want to make sure that as they become middle-class consumers, they're buying made-in-America, grown-in-America products," Froman said.

Currently, he said, "We face tariffs as high as 70 percent on autos; 50 percent on farm machinery; 40 percent on poultry. ... Those tariffs are either going to be eliminated or greatly reduced because of this agreement."

In a statement released Thursday, the nation's largest retailer said it would like to see current trade barriers eliminated.

"Walmart welcomes the conclusion of the negotiations of the Trans-Pacific Partnership Agreement," said Scott Price, president and CEO of Wal-Mart Asia and chief leverage officer at Wal-Mart International. "TPP countries include some of the most robust economies in the Asia Pacific and alone account for about 40% of world GDP and one third of world trade. We believe that this historic agreement will reduce the cost of goods and increase choice for our customers in the Asia-Pacific and the United States."

Tyson also released a statement praising the agreement.

"Like others in the U.S. meat and poultry industries, we fully support the Trans Pacific Partnership (TPP). We believe expanding trade access is essential to growing U.S. beef, pork and poultry exports and encourage Congress to approve the TPP deal. International trade represents approximately 17 percent of our sales," it said.

Dan Hendrix, president and CEO of the Arkansas World Trade Center, said he thought it would have "a long-term detrimental effect" on Arkansas if the U.S. rejects the deal, adding that the other countries would implement the deal among themselves if America opts out.

But Arkansas AFL-CIO President Alan Hughes predicted pink slips and wage cuts if the measure takes effect.

"Every time they pass a trade agreement, you see a surge of jobs start leaving," he said.

When a trade deal passes, even those who remain employed suffer, Hughes said. "Our [wages] go down. You see companies taking away pensions, health plans and everything else. That's lowered our standards.

"I hope this agreement fails because it's not good for America, it's not good for American workers. It's good for corporate greed," he said.

Others say it's too early to determine whether the administration cut a good deal. "We're still reviewing what it means to the rice industry," said Dow Brantley, president of the USA Rice Federation.

Randy Veach, president of the Arkansas Farm Bureau, said his members haven't taken a stand on the proposal and he's still studying its contents.

"You can look at the summaries, but until you get into some of the details, it doesn't quite give you all the picture," he said.

At first glance, the deal appears to be on "the plus side for beef ... and probably pretty good for poultry as well," he said. But the impact on rice growers and dairy producers is harder to determine, he added.

Forty-two percent of U.S. agricultural exports, valued at $63 billion, go to these 11 countries, Veach said, adding, "We're very cognizant of the fact that this is an extremely important agreement."

On Capitol Hill on Thursday, Arkansans indicated, via written statements, that the deal is being scrutinized.

Sen. John Boozman, a Republican from Rogers, is studying "to determine if it's in the best interest of Arkansans to support this deal," said his spokesman, Sara Lasure.

A spokesman for Sen. Tom Cotton, a Republican from Dardanelle, said the lawmaker wants to "make sure it's a good deal for Arkansas. While Senator Cotton believes in free trade, his guiding principle will be to make sure this agreement is good for Arkansas and Arkansas workers."

The four Arkansas Republicans serving in the U.S. House, Rep. Steve Womack, Rep. French Hill, Rep. Rick Crawford and Rep. Bruce Westerman, are all studying the measure, their spokesmen said.

Under current law, the earliest President Barack Obama can sign the agreement is in February. It will then go to Congress, which can either accept or reject it; lawmakers won't be able to amend or filibuster the proposal.

Business on 11/13/2015

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