News
US red meat headed toward big disadvantage in Japan
A livestock economist says the US beef and pork sectors could lose their competitive advantage in Japan. Japan’s agreements with the EU and the 11-member Comprehensive and Progressive Trans-Pacific Partnership are headed toward implementation giving those countries preferential duty access.
US Meat Export Federation’s Erin Borror says there is a big threat to the US. “Not only Europe, but all of our competitors that ship pork as well as beef into Japan will benefit from a reduction in tariffs,” she says.
US chilled beef entering Japan faces a 38.5 percent tariff rate. Borror says Canada, the biggest competitor for US chilled beef, has already been gaining market share. She says that could accelerate once the agreement is implemented and the tariff rate starts to decline. “Now with the CPTPP that drops immediately to 27.5 percent and that is roughly what Australia is already enjoying through their bilateral agreement,” she says. “Then the tariffs goes all the down to 9 percent over 15 years.”
The EU is already Japan’s largest supplier of pork cuts, but the agreement will help bolster exports in the ground seasoned pork category.
The USMEF anticipates both agreements to be implemented by April 2019.
Do you have the courage to print the cause of this catastrophe for beef? If you don’t know, I will give you a hint: Trump. He took the US out of the TPP upon entering office. Remaining in TPP would have immediately lowered the tariff on US beef to the same as other nations. Do you have any plans to remedy the loss of the Japanese market?