Japan takes tariff step on beef from U.S

19/03/2021 12:00 - 205 Views

For the first time in just over 3½ years, Japan is employing a safeguard measure in response to a rise in the volume of beef imports from the U.S.

From today through April 16, tariffs on U.S. beef will increase from 25.8% to 38.5%, adding a burden on the restaurant industry and consumers.

U.S. beef imports have been increasing after the Japan-U.S. trade agreement reached last year lowered tariffs and after Australia, a rival beef exporter to Japan, had its production reduced by drought.

The trade deal with the United States included the safeguard to protect Japan's livestock industry, allowing the raising of tariffs for a 30-day period when imports exceed a set criteria.

Beef imports from the U.S. between April 2020 and February increased by 1.6% year-over-year to 233,112 tons, or 96% of the fiscal 2020 maximum of 242,000 tons, according to the Finance Ministry. As of March 10, the volume exceeded the maximum, hitting 242,229 tons.

The Japan-U.S. trade deal dropped the tariffs to the same level as those of countries participating in the Trans-Pacific Partnership free-trade agreement with Japan.

U.S. beef has become increasingly competitive, often sold at about half the price of Japanese beef and accounting for about 40% of the beef circulated in Japan.

Source: Arkansas Democrat