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Senator Baucus Headed to New Zealand, Japan to Promote Montana Trade, Jobs

Senator Leading Effort to Open American Trade Opportunities with Pacific Economies

Montana’s senior U.S. Senator Max Baucus is headed to New Zealand and Japan next week to support Montana jobs by opening new opportunities to sell Montana products overseas. As leader of the Senate Committee that oversees trade, Baucus will promote the Trans-Pacific Partnership – a new free trade agreement that provides the United States with a critical opportunity to break down barriers that have made it difficult to sell Montana products, like beef, in some of the world’s most important markets.

"More trade means more jobs, and more jobs is what this trip is all about. The Asia Pacific region will drive the next wave of economic growth, so America has to strengthen our trade ties with countries like Japan and New Zealand to stay competitive," Baucus said.

"Japan is a huge market for Montana farmers and ranchers, but unfounded barriers to Montana beef are hurting our ranchers and the jobs they depend on. So, I’m taking our case straight to the top.

"New Zealand is a critical partner for us in securing a Trans-Pacific Partnership that will make it easier for Montana to sell our world-class goods in the growing Pacific market and make sure our trading partners play by the rules. When the playing field is level, Montana’s farmers, ranchers and entrepreneurs can compete with the best in the world."

During the trip, Baucus will meet with both countries’ Prime Ministers, top cabinet officials and opposition party leaders, along with leaders from the business communities. Baucus will also examine the economic success of New Zealand’s indigenous people, the Maori, in hopes of drawing parallels that could help promote job creation in Montana’s Reservation communities. And Baucus will meet with Americans building ties with Japan through the Mansfield fellowship, a program named after the late Montana Senator and Ambassador to Japan Mike Mansfield.

New Zealand

* New Zealand is currently participating in the Trans-Pacific Partnership negotiations. It shares many common interests with Montana and has proven to be an important partner for the United states in negotiating the best deal for American workers and businesses. New Zealand has also been a consistent partner to the United States in fighting for a level playing field at the World Trade Organization. Baucus’ main goals in New Zealand will be strengthening that relationship and finding new ways the United States and New Zealand can work together to ensure the Trans-Pacific Partnership is a success for jobs in both countries.

* New Zealand’s current Ambassador to the United States, Michael Moore, traveled to Montana as part of Baucus’ 2010 Ambassadors Tour. While in Bozeman, Moore presented Helena-native Dan Ellison with the New Zealand Special Services Medal for his rescue and recovery efforts following a 1979 New Zealand plane crash. And New Zealand’s previous Ambassador, Roy Ferguson and his wife Dawn, traveled to Montana as part of Baucus’ 2008 Ambassadors Tour.

Japan

* Japan is already a significant market for American and Montana exports. Still, there is enormous potential to sell even more to Japan by breaking down Japan’s trade barriers and further opening its market – especially when it comes to agriculture products. This will be a major goal of Baucus’ trip.

* Japan is the fourth-largest market for U.S. agricultural exports, valued at $11.8 billion in 2010. And Japan remains the largest purchaser of Montana wheat, accounting for over 50 percent of Montana’s 116 million exported bushels in 2011. Still, Japan’s average agricultural import tariff of 15.7 percent is among the world’s highest for industrialized countries.

* In 2011, Japan was the third largest market for U.S. beef. But, Japan currently only accepts American beef under 21 months of age, and American beef exports to Japan would be significantly higher if Japan were to remove its unscientific restrictions on U.S. beef – something Baucus has long fought for.

* Japan is Montana’s sixth largest export partner, importing more than $63 million worth of Montana goods in 2011.

* Japan is not currently participating in Trans-Pacific Partnership negotiations, but is considering whether to join. Japan is the third largest economy in the world, and its participation in the Trans-Pacific Partnership would triple the collective gross domestic product of current non-U.S. partners.

* Japan’s Ambassador to the United States, Ichiro Fujisaki, traveled to Montana as part of Baucus 2010 Ambassadors Tour.

Trans-Pacific Partnership

* The goal of the Trans-Pacific Partnership is to promote growth and job creation in each of the member countries by making it cheaper and easier to trade goods and services among the members. The partnership would work much like the free trade agreements Baucus has been instrumental in pushing through Congress in the past, except instead of just two countries participating, the Trans-Pacific Partnership would have multiple members.

* Negotiations to determine the exact parameters of the Trans-Pacific Partnership first began in 2005, and are ongoing today. Baucus has been pushing for strong U.S. participation since the beginning, and has urged the White House to fight for the best deal for American workers and businesses.

* Other countries currently participating in the negotiations include: Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam. Canada and Mexico are likely to join the negotiations shortly, and Japan is currently considering whether to join. If Japan joins the talks along with Mexico and Canada, Trans-Pacific Partnership countries would account for 40 percent of the trade of U.S. goods.

* Once the negotiation phase is completed, the Trans-Pacific Partnership will need to be approved by Congress before entering into force. As chairman of the Finance Committee, with sole jurisdiction over international trade, Baucus will be key to getting the negotiated Trans-Pacific Partnership passed through Congress.

Contact: Kate Downen 406-224-5056/Jennifer Donohue 202-224-2651/ Kathy Weber 406-329-7980

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