Japan recently announced a new biofuels policy. It could allow the U.S. to capture up to 100% of...
U.S. and Japan Reach Beef Agreement
U.S. beef exports to Japan exceeded 320,000 metric tons in 2021 and set a new value record at $2.38 billion.
U.S. Trade Representative Katherine Tai and Agriculture Secretary Tom Vilsack announced that the United States and Japan have reached an agreement to increase the beef safeguard trigger level under the U.S.-Japan Trade Agreement. The new three-trigger safeguard mechanism will make it less likely that U.S. exports will reach the safeguard provision which allows Japan to impose higher tariffs.
A senior U.S. official told reporters that the real importance of the agreement is that Japanese importers will not be faced with higher tariffs on U.S. beef. Negotiations had been going on for almost a year, but Tai and Vilsack offered credit to U.S. Ambassador to Japan Rahm Emanuel, who served in Congress and worked in the Obama White House.
"I want to thank Ambassador Katherine Tai and the entire team at USTR for their work to get this deal across the finish line," Vilsack said. "This is a win-win for American ranchers and Japanese consumers. It ensures certainty for years and shows American beef can compete and win anywhere, anytime."
The U.S. beef industry has complained that since the agreement originally went into effect, other beef-producing countries, particularly Australia, have had an advantage over the United States in access to Japan.
The U.S. Meat Export Federation (USMEF) and the National Cattlemen's Beef Association (NCBA) praised the announcement. USMEF greatly appreciates the efforts of USTR and USDA to adjust Japan's safeguard on U.S. beef. NCBA also expressed their gratitude for the leadership and the hard work of negotiators who have been working on this effort for the past year.
In 2021, the United States was the top beef-exporting country in the world, with global sales of beef and beef products valued at over $10 billion. Exports of U.S. beef to Japan totaled almost $2.4 billion in 2021.
Editor’s Take:
Good news for U.S. beef producers. Japan has been more open to lowering barriers to entry and trade tariffs in the past few years. This is an extension of on-going efforts to improve trade relations with Japan to strengthen our strategic alliance and is precisely the type of action supported by virtually all U.S. farmers and ranchers. Congratulations to the negotiators for taking another step in the right direction!