As soon as the Trans-Pacific Partnership accord was announced on Monday, Brenda Barnes braced herself for phone calls from clients, according to The Wall Street Journal. The account manager with international trade services company Geo. S. Bush & Co. Inc., said her agriculture-exporter clients already are getting to work on deals with buyers in the 11 countries that struck the deal with the U.S.
“This will open up discussions almost immediately for new contracts,” Ms. Barnes said.
From small freight brokers like Portland, Ore.-based Geo. S. Bush & Co. Inc. to global logistics giants like United Parcel Service Inc., supply chain providers are gearing up for a surge in business they believe the historic agreement will bring to Pacific trade.
The sweeping deal, taking in countries that make up 40 percent of the global economy and a quarter of global trade would reduce tariffs on a large range of goods that move between the countries. The deal requires congressional approval, and faces a big hurdle in Washington as the 2016 elections draw closer, wrapping lawmakers in high-key electoral politics.
Businesses involved in trade are offering only applause, however. TPP “represents real market opportunities for U.S. companies of all sizes and a chance for them to compete on a more level playing field with local players,” UPS Chief Executive David Abney said in a statement.
Editors Insight: Food Logistics noted Monday, when the TTP agreement was announced, that the food and beverage supply chain has a big opportunity at stake but a lot of work to do in order to take advantage of this opportunity. It now appears that logistics specialists are not wasting any time gearing up for a surge in business directly related to this agreement.
The food supply chain has to approach this opportunity carefully, since more trade creates more vulnerabilities in maintaining safety and product quality. There is a direct correlation between the growth of the global food supply chain and an increase in food recalls, despite stricter safety rules and more robust product monitoring tools.
This trade agreement, while not finalized, could bring a huge windfall to the U.S. The U.S. Department of Agriculture has listed how each state and individual commodities stand to benefit from increased agricultural trade with the 11 other TPP countries, as noted in another report in today’s newsletter. 10-7-15 By Elliot Maras