The Pacific Northwest is the country's biggest producer of apples, pears, and cherries. That's why Christian Schlect is keenly interested in the trade battle that unfolded this week in the U.S. Senate. Schlect is president of the Northwest Horticultural Council, an organization that represents several thousand tree fruit growers in Oregon, Washington and Idaho. According to Schlect, Asia is an important market for them.
OPB's Kate Davidson spoke with Schlect about the Trans-Pacific Partnership, or TPP, and what it could mean for Pacific Northwest growers. The TPP is still being negotiated. The U.S. Senate voted yesterday to open debate on "fast-track" legislation that's viewed as essential to completing the trade treaty and eventually securing Congressional passage.
Kate Davidson: Christian Schlect welcome to the program.
Christian Schlect: I appreciate being on.
KD: So the Senate has now voted to debate what's known as "fast-track" legislation. President Obama needs "fast- track" authority to get the massive trade deal called the Trans-Pacific Partnership through Congress. How do you think this trade deal would benefit tree fruit growers in the Northwest?
CS: Well I think it will benefit tree fruit growers - apples, pears and cherries. The Pacific Rim is our major growth market. We export about 30 percent of our crop, each one of the three major fruit crops, each year and most of that export work goes into Asia, which is really, again, the growth market. So countries a lot of people don't think of, like Malaysia, Vietnam, are very important to our future in terms of sales and growth opportunities for our growers.
KD: Can you give me a specific example of the kind of tariffs that apply to apples or pears shipped to Pacific Rim countries, and how they might change under a trade deal like this?
CS: Yes. Well one of the examples would be Vietnam. Right now there is a 10 percent tariff on pears and apples and cherries, each one of those commodities. Vietnam is a country of 93 million people, and a growing one, and actually is favorably disposed to the U.S. and its product. So getting a 10 percent tariff down in that type of country would be very beneficial and welcome.
KD: And do you know what the tariff would fall to under the framework of the TPP?
CS: It would go down to zero.
Later in the interview, Schlect commented on tariffs again:
CS:Actually tariffs are not as big of barriers as they once were. We're more concerned with non-tariff barriers like phytosanitary issues involving pests or diseases. Restrictions on that might be manipulated to prevent trade. The TPP has mechanisms to sort out, between countries, those technical problems to trade, so that it can be facilitated and not prevented by some bureaucrat who's trying to manipulate the rules.
KD: Of course the TPP is being negotiated in secret, but Mr. Schlect you sit on a federal advisory committee for agricultural policy. So you've actually had some confidential briefings on the negotiations. How do you respond to critics who say that the TPP would be detrimental and may harm American workers.
CS: Well I think that it's all kind of site-specific in this trade negotiation. If you're a worker in an industry that might have increased competition, and again most of this TPP is not agricultural, most of it is investments and intellectual property. All my interests and focus is on agriculture. There we don't see a negative. Most of the countries we are dealing with in these negotiations either don't grow apples, pears and cherries, or they already have access to our market. For those who are harmed, that's the nature I think of trade. There's going to be people who are successful and there are going to be sectors that aren't as successful. The United States is very competitive country, you've got to rely on that. We also have to rely that these other countries, they have large populations and they have needs, and I think economically, tying them into the U.S. market has a lot of benefits beyond straight trade.
KD: Your group has been rooting for TPA, or Trade Promotion Authority - what's known as "fast-track" authority. I take it you'll be following the debate closely next week?
CS: Yes we will. You know Congress will work its will and we don't have much influence at this point. But we've made our voices known to the members of the delegation from Oregon, Washington and Idaho. So anyway, we're supportive and we'll be watching it next week.
KD: Christian Schlect is president of the Northwest Horticultural Council. Thanks for joining us.
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