US Beef Exports to Japan
U.S. beef producers have welcomed the newly formed USMCA, the U.S. Japan Trade Agreement, as well as the U.S. China Phase 1 Trade agreement. Hopes continue for increased foreign demand to bolster the down U.S. beef markets. Although the novel Corona Virus 2019 (Covid-19) is wreaking havoc on markets across the globe, trade flows have continued strong. Moving into the calendar year for 2020, U.S. beef exports to Japan in January were moving right in line with 2019 and 2018, totaling 66.4 million pounds CWE (down -2.6 percent year-over-year). Japan continues to be the top market for U.S. beef and veal exports.

Although Japan continues to be the United State’s top beef market, according to the USTR, “U.S. exports of beef and beef products to Japan currently face a competitive disadvantage.  Major U.S. competitors in the Japanese market, including Australia, Canada, and New Zealand receive preferential market access treatment under CP-TPP.  The U.S.-Japan Trade Agreement is necessary for U.S. exports of beef and beef products to remain competitive… The United States will obtain market access conditions equal to CP-TPP countries, with tariffs for fresh, chilled, and frozen beef reduced from 38.5 percent to 9 percent in 15 years. Additionally, Japan will eliminate tariffs on processed beef products, including beef jerky and meat extracts, which are as high as 50 percent, in 5 to 15 years.”

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