In this file:
· Why The Japan Beef Tariff Isn't As Bad As Producers Think
· Need for Japanese Trade Deal Underscored by Tariff Rate Hike, TPP'ers Now Have the Upper Hand
Why The Japan Beef Tariff Isn't As Bad As Producers Think
By Ashley Davenport, Farm Journal Broadcast, Multimedia Editor
via AgWeb - August 10, 2017
The U.S. Meat Export Federation (USMEF) said Japan is continuing to buy U.S. beef. Exports to the island country continued to gain momentum in June, with volume up 7 percent and value up 13 percent compared to 2016.
While demand for U.S. beef is very strong in Japan’s retail and food service sectors, frozen exports to Japan face a higher tariff rate through March 2018. The tariff on U.S. frozen beef has risen from 38.5 percent to 50 percent.
Don Close, senior analyst of animal protein at Rabobank, said this increase is “terribly frustrating,” but it isn’t the worst thing that could happen.
“Since the big move in currencies in early July, if you take the surge in values in the Australian dollar, the slight increase in the Japanese yen and the weakness in the U.S. dollar, if you take what it cost Japan to buy product from Australia in U.S. dollars...
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Need for Japanese Trade Deal Underscored by Tariff Rate Hike, TPP'ers Now Have the Upper Hand
Oklahoma Farm Report
10 Aug 2017
The Japanese government announced last month, that its so-called “safeguard mechanism” has been triggered by the amount of “frozen” beef that has been imported into their market by other countries, including the US. This mechanism, designed to protect Japan’s domestic beef industry, will cause increased tariffs to come into effect from now until the end of next March. US Meat Export Federation CEO Phil Seng, this presents a problem for US beef exporters, who will now be forced to reduce the tonnage of frozen beef to Japan, and divert it back into the domestic market to be absorbed. Jim Robb of the Livestock Marketing Information Center told Ron Hays, Radio Oklahoma Ag Network farm director, this frozen beef will most likely wind up being ground and added to our supply of hamburger. Meanwhile, the US will be left at a disadvantage to compete for market share in Japan, with nation’s that signed on under the Trans-Pacific Partnership.
“The US is going to face those higher tariffs, but Australia and Mexico for example - because they have trade agreements with Japan, get to keep their rates unchanged,” Robb said. “Australia for example, would be at about 27%, we’ll be 50% and Mexico will be just over 30%. So, some countries are going to benefit and the US is going to lose a little bit.”
The US won’t be the only one losing out. Canada and New Zealand are also in the same boat as the US, with no trade agreement in the books. Japan’s food service industry, though, also stands to lose out, as their “beef bowl” restaurants are heavily reliant on US short-ribs...
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