Japan's limit for American beef was reached this month
242,000 tonnes of US beef have been already shipped this year to Japan, which triggered the safeguard limit that will increase tariffs from 25.8% to 38.5% for a month, according to Spectrum1 News channel. Japan’s limits on imports of meat and other farm products have been a recurring trade issue with the US, as USMEF representatives mentioned. In their opinion, the Japanese government will have to raise the limit to avoid a similar situation every year.
"Triggering of the beef safeguard is not unexpected. In fact, based on our 15-year outlook, USMEF projects that without an increase to the safeguard threshold, Japan’s imports of U.S. beef are likely to trigger the annual safeguard every year," USMEF said in a statement.
A bilateral trade agreement signed in 2019 provided for US beef imports to gradually rise, and taxes to drop from 38.5% first to 25.8%, and eventually to 9% in 15 years. The Japan-US Trade Agreement also says that if the safeguard gets set off, Japan agrees to consult with the US to adjust the level. Japan’s imports of US beef rose 3% in the first part of the year compared to the previous year. American beef exports to South Korea and China have also been growing. Based on value, Japan is the main market for US beef but the American exporters are facing strong competition from Australia.
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