Japan to Set Low Tariffs for Up to 240,000 Tons of U.S. Beef

Tokyo, Sept. 20 (Jiji Press)--The Japanese government plans to set the level of U.S. beef imports triggering its safeguard measures at roughly 240,000 tons per year initially under a new Japan-U.S. trade agreement that the two governments hope to sign next week, it was learned Friday. The tariff rate for U.S. beef imports below the safeguard threshold will be set at about 26 pct once the trade deal goes into effect, and be lowered in stages until it comes down to 9 pct in fiscal 2033, sources familiar with the matter said. The volume of imports triggering safeguard measures will be gradually expanded to 290,000 tons a year. Imports exceeding the threshold will be subject to tariffs of 38.5 pct, the same as the current level, to protect the domestic livestock industry, according to the sources. Japan's U.S. beef imports in fiscal 2018 stood at about 250,000 tons. Under the Trans-Pacific Partnership free trade agreement, which took effect late last year, Japan sets safeguard measures for beef while introducing lower tariffs for a certain amount of imports from member countries, including Australia. For fiscal 2019, which ends next March, up to 600,000 tons of imports are eligible for the lower tariffs. The planned trade agreement with the United States will expand overall lower-tariff imports. To reduce the total amount, Japan hopes to hold discussions, after signing the deal with the United States, with TPP members to lower the safeguard-triggering import volume. Tokyo hopes to achieve the reduction in about three years, according to the sources. If Australia and other TPP members turn down the Japanese request, the influx of imported beef may put a strain on domestic livestock producers. In exchange for Tokyo's beef market liberalization, the United States will expand the amount of Japanese beef imports subject to lower tariffs, which now stands at 200 tons per year. Specifically, Japan will be allowed to be part of a program in which several countries share an annual beef quota of 64,000 tons with discounted tariffs. The United States, under the administration of President Donald Trump, announced its decision to pull out of the TPP framework in 2017. As the TPP's entry into force put U.S. beef exporters at a disadvantage to their counterparts in Australia and other member countries of the multilateral free trade pact, Washington asked Tokyo in the bilateral trade negotiations for beef market liberalization on par with the levels it agreed under the TPP. The issue of how to set safeguard measures has been a major point of contention in the trade talks. END