Research: Trade Agreement with Japan is Crucial for US Beef Industry
University of Tennessee Institute of Agriculture projections indicate that the signing of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in March 2018 could disadvantage U.S. beef exports to Japan, a stumbling block that U.S. beef producers can ill afford.
Beef-exporting countries party to the trade agreement, such as Australia, New Zealand, Mexico and Canada, will benefit from an immediate reduction and phase-down of tariffs from their current levels over a 15-year period. The U.S. was once a CPTPP member, but in January 2017, President Donald Trump signed a memorandum officially withdrawing from the trade agreement.
Under the CPTPP, Japan agreed to significant tariff reductions on beef, with reductions from 38.5 percent to 9 percent for muscle cuts. Tariff reductions for select offal products will be phased out completely. Meanwhile, U.S. beef will continue to face tariffs of 38.5 percent to 50 percent, as well as a global safeguard tariff of 50 percent when imports exceed a specified level. Understandably, the...Full Story »Jul 27 10:00 AM, General News