July 11, 2005

Australia urges Japan not to increase beef tariffs
 

Australia has urged Japan not to increase its beef imports tariffs, likely to take effect from next month.

Japan has a 'snapback' tariff that will automatically increase the tariff on Australian chilled and frozen beef from 38.5 percent to 50 percent of cost price. The tariff increase happens when beef imports from a certain country rises 17 percent from the same quarter of last year.

Australia's Trade Minister Mark Vaile and Agriculture Minister Peter McGauran said in a joint statement that climbing imports do not threaten Japanese producers as they merely reflect a recovery from the Dec 2003 mad cow disease scare, which resulted in a US beef ban in Japan.

At Japan's request, Australia has worked hard to increase its beef exports to meet the Japanese market's demand for beef, the statement said.

Thus, Australia argues that Japan should keep the tariff on chilled and frozen beef at 38.5 percent, whether or not the trigger is reached.

Australia also assured Japan that the Australian government will work closely with the beef industry to ensure the best possible outcome for both countries in this matter.