Dive Brief:
- The House passed legislation, called The Bipartisan Congressional Trade Priorities and Accountability Act of 2015, or the TPA-2015, by a slim margin which will expedite President Obama's authority to negotiate a huge Pacific trade deal.
- The trade deal will involve a dozen Pacific countries and will potentially soften or eliminate many trade barriers, such as high tariffs and other trade complications, for agricultural, food, and other products between the U.S. and these nations.
- The bill now heads to the Senate, which the International Dairy Foods Association hopes will pass the legislation next week.
Dive Insight:
Another group, the Grocery Manufacturers Association, expressed support for the TPA back in April.
The TPA could have innumerable implications for the food industry in the U.S. Perhaps foremost is the number of new markets U.S. food producers and manufacturers will have for their products, which could significantly boost economic growth in the industry.
More markets means not just more customers but also more employees needed to keep up with the influx of production, so the TPA could ultimately be a jobs creator for the food industry as well.
With trade barriers like high tariffs lowered, this could also mean better margins and economic prosperity for U.S. food companies.