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Mulhern optimistic TPP can be completed with dairy

 

A rather disappointing end at the Trans Pacific Partnership trade talks in Hawaii last Friday. Dairy continued to be one of the main sticking points with four countries in disagreement over market access. New Zealand wants more access to the U.S. market, the U.S. says not without more American access to Canadian and Japanese markets while Canada and Japan are reluctant to offer that.

National Milk Producers Federation President and CEO Jim Mulhern was in Hawaii, he says there was some back-and-forth between the U.S. and Canada but it was too little, too late to achieve a final agreement last week. “The key point is that Canada had finally engaged on dairy and I’m hopeful over the next few weeks with continuing negotiations that an adequate package can be developed.”

Dairy is part of what looks like a three-pronged hang up with Japan. The other elements involve the automotive industry and pharmaceuticals. Mulhern says Japan has been willing to offer some market access although he doesn’t think it currently enough.

There have been fears that if the dairy issue is not resolved, it may be pulled out of the final agreement, something a number of U.S. Congressional Representatives and Senators have said they would have a difficult time supporting. Mulhern expects the final agreement will need all the votes it can get to gain Congressional approval and that means it needs the dairy delegation on-board. “The need to get to that point was a critical factor in the deal not being done last week because it would not have been a good deal for U.S. dairy.” Mulhern commended the U.S. negotiating team for holding the line on dairy.

In the end, he believes they are close on an agreement and that it will be finished yet this year.

Mulhern talks about the negotiations: