April 22, 2014

Japan to lower Australian chicken and pork tariffs

Japan will apply a tariff-quota system for Australian chicken and pork imports with low duty rates under a bilateral free trade deal, the Japanese farm ministry announced.

After seven years of negotiations, Tokyo and Canberra reached a substantive free trade agreement (FTA) on April 7, but the details had not been announced.

Under the FTA deal with Canberra, Tokyo will reduce tariffs on chicken and related processed products by a maximum 40%, and those on pork and related processed products by a maximum 50%, up to certain quantities in both cases. Tariffs will also be cut for beef processed products, the ministry said.

Over the next 10 years, the low-tariff quotas will be expanded for chicken and related processed products as well as for beef processed products, while the quota for pork and related processed products will be expanded over the next five years.

Under the bilateral free trade pact, Japan will abolish tariffs on around 88% of all goods within 10 years, while Australia will do so on more than 99% of goods.