US meat exporters risk losing their market share in Japan
Erin Borror, economic expert of the American Federation for the Export of Meat (USMEF), believes that Japan is a good market for selling American beef and pork, but the situation will change if the United States does not soon conclude a trade agreement with its Asian partner.
During the discussion at the US Agricultural Outlook Forum, which took place last week, the expert noted that by the end of 2018, exports of American beef and pork to Japan would reach 2.1 billion and 1.65 billion dollars, respectively. But, according to Erin Borror, next year the situation may change dramatically, since Japan signed trade agreements with Australia, the European Union, Canada, New Zealand, Mexico and Chile. New treaties provide preferences, in particular, provide for a reduction in duties on the importation of meat to Japan.
If the US does not sign a similar agreement, American pork and beef will become uncompetitive. It is worth noting that red meat makes up a significant part (30%) of US agricultural exports to Japan.
Recall that on February 1, the Economic Partnership Agreement between the European Union and Japan was signed, which cancels 90% of import taxes. This is the largest bargain ever concluded between two partners. The contract, in particular, provides for a reduction in the export duty for beef to Japan, and for pork - the duty-free trade in processed meat is permitted and low duties on trade in fresh meat are introduced.
SOURCE: American Beef Club