Japan Discusses Big Tariff Cuts for Pork with U.S.

Tokyo, May 2 (Jiji Press)--Japan is discussing sizable cuts in its pork tariffs with the United States as part of bilateral negotiations on trade liberalization under the Trans-Pacific Partnership framework, an informed source said Friday. Japan imposes a tariff of up to 482 yen per kilogram on lower-priced pork imports. The idea on the table calls for lowering the tariff to around 120 yen soon after the effectuation of the envisioned TPP agreement and eventually to 50 yen over a period of 10 or more years, the source familiar with bilateral relations said. As to beef, the two countries are discussing cutting the Japanese tariff from the current 38.5 pct to 9 pct over at least 10 years, according to the source. The tariff reduction ideas are likely to draw fire from Japanese farm groups. The Japanese government is seen struggling to persuade them. At the same time, Japan is requesting the introduction of a safeguard mechanism for pork that would allow Japan to raise the tariff rate back to the original level if low-priced pork imports shoot up, the source said. Japan insists on the need for such a mechanism because it wants to lessen the impact of expected pork import expansion on domestic pig farmers. This stance may add fuel to the frustration of pork producer groups in the United States. The two countries will resume bilateral TPP talks at the working level from the middle of next week. Participants will prepare multiple options on thorny issues of automobile trade and five key agricultural product categories including pork and beef, so that the two countries can make a political decision at a ministerial meeting. Informed sources said the U.S. government is accelerating adjustments with Congress and business groups ahead of the bilateral TPP talks. Speaking to reporters in Tokyo Friday, Kazuhisa Shibuya, councilor at the Cabinet Secretariat, said that no firm agreement has been reached between Japan and the United States on specific trade items. Shibuya, who is a member of the government's TPP task force, also said the government does not conceal any TPP agreement with the United States. He indicated that multiple compromise proposals, including on tariff rates, are being discussed. END