Japan's Growing Demand for Quality U.S. Beef is Officially Safeguarded
Japan is the United States’ largest export market for beef, according to the U.S. Meat Export Federation, with the country raking in 320,737 metric tons in 2021, up 5% from 2020.
To keep this upward trajectory going, a new three-trigger safeguard on beef under the U.S.-Japan Trade Agreement was signed into action on Friday to decrease the threat of beef trade interruptions.
According to the Office of the USTR, the safeguard will allow U.S. exporters to meet Japan’s growing demand for high-quality beef while minimizing the odds that Japan will increase tariffs.
“America’s farmers and ranchers have beef products that can compete anywhere in the globe,” said USDA Secretary Tom Vilsack. “This is a positive development for America’s farmers and ranchers. It allows for greater market-based growth in U.S. beef exports to Japan and reduces the probability of higher Japanese tariffs being imposed on U.S. goods.”
In following with the new agreement, the three triggers will enforce:
1. Japanese imports of U.S. beef at a level higher than previously established under the original agreement.
2. Japanese imports of U.S. beef be more than the volume of safeguarded beef imports agreed on in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
3. Imports of U.S. beef to Japan that exceed the total amount of beef imported from the U.S. in the previous year.
Kent Bacus, NCBA’s senior director of international trade and market access says the agreement “underscores the importance of a mutually beneficial relationship” between American cattle producers and Japanese consumers.
“We are hopeful that the improved safeguard will provide greater certainty for all segments of the supply chain,” he says.
U.S. beef exports in 2021 were four times higher than Japanese beef exports, coming in at over $10 billion. Japan made up $2.3 billion of the $10 billion in U.S. beef export sales in 2021.
More on ag trade:
U.S. and Japan Agree To Increase Beef Safeguard Trigger Level
What Biden's New Economic Framework Means for Ag Trade
John Phipps: The Truth Behind the Numbers in Calculating Agriculture's Trade Balance
