May 29, 2014

Japan to review tariffs on pork imports from US

Japan will review the country's tariffs on pork brought in from the US as it agrees to a possible increase of imports which Washington has been calling for in bilateral talks on the Trans-Pacific Partnership, according to sources.

Japan may reduce tariffs across a wide range of prices, but how and to what level remains undecided, the sources added.

Pork is one of the agricultural products which the Abe administration has declared it would protect, thus a major obstacle in talks with the U.S.

The two governments aim to bridge outstanding disagreements during future bilateral working-level talks in Washington, both parties said.

Japan currently levies tariffs on pork according to three price bands, imposing the highest levies on cheaper pork to block an influx of inexpensive foreign meat.

Japan imposes up to US$4.75/kg on the lowest-priced pork, while high-priced pork is subjected to a 4.3% tariff. Levies on meat in the mid-range aim to boost its price, not exceeding US$5.41/kg.

Tokyo is considering lowering tariffs on both low- and high-priced pork, while reviewing the tariff calculations on mid-priced pork, but details have yet to be discussed, the sources said.