USMEF Statement on Approval of U.S.-Japan Trade Agreement
Today the Upper House of the Japanese Parliament approved the U.S.-Japan trade agreement, which will greatly improve access for U.S. red meat in Japan. Key provisions of the agreement, which was approved by Japan’s Lower House on Nov. 19, were released in October by the Office of the U.S. Trade Representative (USTR).
U.S. Meat Export Federation (USMEF) President and CEO Dan Halstrom issued this statement:
With the U.S.-Japan trade agreement now approved by the Japanese Parliament, the U.S. beef and pork industries look forward to expanded opportunities in Japan, which is already the largest value destination for U.S. pork and beef exports (combined export value in 2018 was $3.7 billion). This agreement is one of the biggest developments in the history of red meat trade, as no international market delivers greater benefits to U.S. farmers and ranchers, and to the entire U.S. supply chain, than Japan.
USMEF thanks President Trump, USTR and USDA for prioritizing and securing this agreement, which is a major breakthrough for U.S. agriculture. We also extend our appreciation to Prime Minister Shinzo Abe and his administration for taking unprecedented steps to expand market access for U.S. red meat. In addition to the benefits provided to the U.S. industry, Japanese consumers will now enjoy more affordable access to a wider range of U.S. products.
USMEF’s projected impact on U.S. beef and pork exports to Japan:
With tariff rates mirroring those imposed on major competitors, USMEF’s forecast for 2020 is for U.S. beef and pork exports to Japan to reach $2.3 billion and $1.7 billion, respectively. Export volumes are projected to be roughly 360,000 metric tons for beef and 410,000 metric tons for pork. Volume and value projections are based on reduced tariff rates being in place for the full year.
USMEF projects that by 2025, U.S. red meat exports to Japan will approach $5 billion – roughly $2.8 billion for U.S. beef and more than $2 billion for U.S. pork – as consumption of U.S. red meat increases due to greater access for Japanese consumers and the U.S. gaining market share. The agreement also opens new opportunities for value-added and processed red meat products, with tariffs on these products phasing to zero, which contributes to the overall growth in U.S. exports to the high-value Japanese market.