May 16, 2013

Japan to reduce import tariffs on Australian beef

As part of a bilateral economic partnership agreement, Japan is set to agree to lower import tariffs on Australian frozen beef from 38.5% to around 30%.

Tariffs on chilled, grass-fed beef from Australia will also likely be brought down from 38.5% to roughly 30%. But those on chilled, grain-fed beef will remain unchanged, as this type of Aussie beef competes against some Japanese offerings.

Frozen Australian beef is usually used by restaurants for such dishes as hamburgers and is not expected to directly compete with domestic beef.

"We have managed to hold the potential impact on the domestic beef industry to a minimum," said a Japanese government official.

The Japanese government, which last cut its beef import duties in fiscal 2000, shrugged off Australian requests for the removal of tariffs for other products like wheat, dairy and sugar.

The agreement with Australia is likely to impact the negotiations on import levies on US beef in the Trans-Pacific Partnership free trade talks, which Japan will join in July.