September 17, 2019

US to raise low-tariff quota for Japanese beef


The United States will raise its low-tariff quota for Japanese beef following recent trade negotiations, according to sources close to the matter.

However, while Japan could export more beef to the US at a duty rate far below the 26.4% levied on quota-exceeding exports,  it is not known by how much the quota will be expanded from the current 200 tonnes per year.

The US levies an import duty of 4.4 cents per kilogramme on the first 200 tonnes of Japanese beef each year. Japan exported 421 tonnes of beef worth ¥3.3 billion (US$31 million) to the US in 2018, growing fourfold in five years.

Before the US withdrew from the Trans-Pacific Partnership (TPP) free trade pact in 2017, it planned to set a 3,000-tonne duty-free quota for Japanese beef and remove the tariffs completely in 15 years.

Japan and the US plan to finalise their trade deal when their leaders meet in New York, US, later in the month.

While the details of a broad agreement reached in August on the bilateral trade accord have yet to be announced, Japan is expected to also cut tariffs on US farm products such as beef, pork, wheat and dairy products to around the same levels as in existing free trade frameworks such as the TPP.

- Japan Today / Kyodo