Us Japan Trade Agreement Beef
In 2018, the United States exported $2.1 billion worth of beef and beef products to Japan. Japan is the largest U.S. beef export market, based on value. Under the agreement, the United States will benefit from market access conditions equivalent to CP-TPP countries, with tariffs on fresh, chilled and frozen beef reduced from 38.5% to 9% within 15 years. In addition, within five to fifteen years, Japan will eliminate tariffs on processed beef products, including beef and meat extracts, of up to 50%. The agreement, approved in principle in August and confirmed in September, was approved by the upper house of the Japanese Parliament, the regional parliament, and is expected to be signed next week by US President Donald Trump and enter into force on January 1, 2020. Japan and the United States will work together with this agreement to agree on the adaptation of withdrawal conditions into two scenarios. First, Japan and the United States will begin consultations in the fourth year of the agreement if Japan negotiates changes to the protection measure with the CP-TPP countries. Second, Japan agrees to consult consultations to align the level of security triggering applicable to a higher level if protection is ever triggered.
The consultation mechanism is developed in an alternative letter. USMEF estimates that U.S. red meat exports to Japan will reach $5 billion by 2025 – about $2.8 billion for U.S. beef and more than $2 billion for U.S. pork – due to increased red meat consumption in the United States due to improved access to Japanese consumers and market share in the United States. The agreement also opens up new opportunities for high-quality and processed red meat products, with tariffs on these products falling to zero, contributing to the overall growth of U.S. exports to the high-quality Japanese market. The TPP – considered one of the most comprehensive free trade agreements in the world (Mukhopadhyay and Thomassin, 2018) – has been at the heart of President Obama`s strategic pivot for Asia (McBride and Chatzky, 2019). TPP negotiators have sought to remove non-tariff and tariff barriers and to establish dispute settlement mechanisms that would allow TPP countries to resolve disputes outside the WTO.