The United States and Japan have begun discussions on a bilateral trade agreement. The United States has been seeking an agreement after deciding not to join the multilateral trade pact known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). For meat producers, this is imperative.
U.S. beef is at a severe trade disadvantage in Japan right now. The tariff rate on our beef products is at 38.5%, while CPTPP members are at 26%. This rate will drop to nine percent over the future of the agreement. U.S. Meat Export Federation’s (USMEF) President and CEO Dan Halstrom spells it out.
On the pork side of the equation, the United States is disadvantaged not only by CPTPP but also a trade agreement between the European Union and Japan.
Halstrom says time is of the essence in getting a deal done with Japan.