Japan's inclusion in trade talks will benefit state
Matt Harris Director of governmental affairs Washington State Potato Commission
MOSES LAKE - The state's potato industry could see an increase in export activity to Japan if Japan is formally included in ongoing Trans Pacific Partnership (TPP) trade talks.
The Obama administration recently announced its support of the inclusion of Japan in the TPP, a potential trade pact between the United States and 10 other countries, according to a National Potato Council statement.
Japan must receive the approval of all negotiating countries to be added to the negotiation table. Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam are the other nations involved in the trade talks, according to the NPC.
Japan's participation is expected to result in the elimination of tariffs on U.S. potato products. According to the NPC, tariffs currently range from 8.5 percent on frozen French fries to 20 percent on dehydrated potatoes.
Matt Harris, director of governmental affairs for the Moses Lake-based Washington State Potato Commission, said Japan is the state's largest export partner for potato products. A substantial amount of those exports come from production areas in the Columbia Basin, he said.
He said the state's potato industry would benefit from Japan's inclusion in the TPP. More Washington products would be able to reach Japanese consumers if tariffs were eliminated, Harris said.
"We're going to see potential for some increase due to negotiations," he said. "This is very positive for agriculture in Washington state."
According to the NPC release, Japan is also the largest export market for U.S. potatoes.
"The inclusion of Japan in TPP will be a tremendous boost for the U.S. potato industry, which currently ships one-fourth of its exports to that country," said Randy Hardy, NPC's vice president of trade affairs.
Exports to Japan were valued at more than $400 million in 2012, an increase of 10 percent from the previous year.
If Japan should officially join talks and the TPP be formalized, the country's frozen potato market is expected to increase by $140 million over the next five years.
Dehydrated potato exports are also expected to experience an annual growth of 10 percent, according to the NPC. In addition, fresh chip-stock exports should grow by at least 25 percent each year, resulting in annual sales of $25 million by 2017.