THE US wheat industry, spooked by the upcoming Trans Pacific Partnership (TPP) trade deal, of which the US is not a part of, is lobbying hard for a new trade deal with Japan.
As it stands, the US may be up to $A97 a tonne worse off than competitors that are signed up to the deal, such as Canada and Australia.
Japan is a signatory to the TPP, along with key competitors to the US such as Australia and Canada, which is worrying US wheat lobby groups such as US Wheat Associates, concerned they may lose market share in the lucrative Japanese market.
Sales to Japan have long been prized by wheat exporting nations as it is quality-focused market, prepared to pay premiums for products such as noodle wheat.
As part of the TPP, Japan will grant preferential access to wheat export countries that are in the agreement.
In response to this, USW president Vince Peterson today urged the U.S. Trade Representative (USTR) to seek a rapid solution to this vulnerability through trade negotiations with Japan.
If the US does not renegotiate a deal, Mr Peterson said it was likely US wheat exports would be effectively shut out of the Japanese market.
He said this would undo US market development in Japan.
“US Wheat Associates has had an office in Tokyo for more than 60 years and we have invested countless hours and millions of dollars building this market.”
Gregor Heard
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
