Japan To Hike Tariff For US Frozen Beef To 50%

Japan's emergency tariff increase on frozen beef imports adds a new wrinkle to trade talks with a USA fretting about perceived imbalances.

"This would harm our important bilateral trade relationship with Japan on agricultural products", Perdue added.

U.S. Secretary of Agriculture Sonny. The NCBA "opposes artificial barriers like these".

"Nobody wins in this situation", Uden said. Our producers lose access, and beef becomes a lot more expensive for Japanese consumers.

Nations that have EPAs with Japan, such as Australia, Mexico and Chile, will be excluded from the hike in tariffs.

Frozen beef from Australia is exempt because of its free trade agreement with Japan.

"Australia's trade agreement with Japan has brought the tariff on its frozen beef down to 27 percent, compared to the almost 40 percent tariff applied to US beef", Smith said.

Under World Trade Organization rules, Japan can introduce safeguard tariffs when imports grow more than 17 percent in a quarter on a year-on-year basis. The duty increases from 38.5 percent to 50 percent when those imports exceed the safeguard volume. Overall US beef exports for the first five months of the year were 497,323t. "The safeguard will not only have negative implications for USA beef producers, but will also have a significant impact on the Japanese food service industry", the group's president and CEO, Philip Seng, said in a press release Thursday.

"My understanding is no", he said, when asked whether Japan warned Canada about the tariff change. Japan has also moved away from the quarterly safeguard mechanism in its recent trade agreements.

"USMEF will work with its partners in Japan to mitigate the impact of the safeguard as much as possible", he noted.

Australia could still struggle to win market share as its prices remain high because of a drought that has cut cattle numbers, said Nalivka, who added that a weaker US dollar could help offset the tariff increase.

Trade terms Japan negotiated with the 10 remaining members of the TPP remain in force.

The Trump administration could take up the emergency tariffs during the second round of a high-level economic dialogue the Japanese and US governments are planning to hold in October in Washington.

Nebraska Governor Pete Ricketts also released a statement Friday afternoon.

The hike threatens a significant sector of United States' access to the biggest Asian market for U.S. beef, just as President Donald Trump seeks to expand American exports to Japan.

Ricketts is scheduled to make
a trade mission to Japan in September.

Citing rising imports of frozen beef, the Japanese government today announced it would increase its tariff on US beef in a manner that the Trans-Pacific Partnership apparently would have prevented.

According to figures from the U.S. Department of Agriculture, the U.S. supplies around 35 percent, though U.S. beef exports to Japan have risen recently as prices fell after the livestock sector recovered from years of drought. Exports of chilled beef from the United States to Japan totaled 57,970 tons during that period and frozen beef exports were 44,760 tons-valued at $414.4 million and $166.7 million, respectively, according to U.S. Meat Export Federation data.

Vanessa Coleman

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