US-Japan trade negotiations signals hope for the meat industry
US and Japanese officials are ready to engage in negotiations on a new trade deal between the two parts. That can be only satisfactorily for the US meat industry, as Japan, the leading value market for US beef and pork, still limits access for some products through higher tariffs.
At this time, countries such as Australia, New Zealand, Mexico and Canada, will benefit from an immediate reduction and phase-down of tariffs from their current levels over a 15-year period thanks to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) signed in March by the Asian country with other partners in the Pacific area.
"It is important for the US to stay engaged in international trade negotiations in order to maintain its competitive edge in global markets," declared University of Tennessee Institute of Agriculture (UTIA)trade expert Andrew Muhammad.
For now, US beef faces tariffs of 38.5% to 50%, as well as a global safeguard tariff of 50% when imports exceed a specified level.
"Japan is the leading value market for U.S. beef and pork, and there is tremendous room for further export growth. But for that to happen, tariff relief is absolutely essential so that U.S. red meat is on a level playing field with our main competitors. USMEF is very encouraged by the commitment to open negotiations on a U.S.-Japan trade agreement, with specific inclusion of agricultural market access. We hope to see rapid progress in these negotiations", stated US Meat Export Federation President, Dan Halstrom.
Right now, the US beef industry holds a 25% market share in Japan, but without a Free Trade Agreement signed in the next period, US beef could decrease by as much as $143 million, leaving room for other competitors, according to a UTIA projection on beef trade between the two countries.
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