April 7, 2022

Japan asks the US to continue importing Japanese beef at a low tariff

Japan has asked the US to continue importing Japanese beef at a low tariff even if imports surpass its low tariff quota, The Japan Times reported.

The call comes as increased US imports of Brazilian beef could result in the import quota for countries like Japan and Brazil to be filed up in April 2022.

The current tariff system imposes a high levy if the full quota is reached. This would affect exports of Japanese wagyu and other beef to the US.

The current low-tariff quota is set at 65,005 tonnes with a rate of 4.4 cents per kg.

Officials from the Japanese government visited the United States at end-March to ask the Office of the U.S. Trade Representative and others to maintain low-tariff imports.

The US government may not accept Japan's request as it wants to protect its farmers, especially with midterm elections happening in November this year.

The total Japan beef exports to the US last year was worth JPY 10.2 billion (~US$82 million; JPY 100 = US$0.81). This was three times higher compared to 2019, before the current quota system was implemented in 2020.

The US has increased its imports of Brazilian beef after China suspended Brazilian beef imports because of a bovine spongiform encephalopathy (BSE) outbreak.

96% of the low-tariff quota for 2022 has been filled between January to March this year. Imports of beef surpassing the quota will be charged a 26.4% tariff.

-      The Japan Times