Bilateral trade talks are underway between the U.S. and Japan, with plenty at stake for the beef industry in the negotiations. NCBA strongly supports a bilateral agreement between the two countries to help offset the 12% tariff rate disadvantage U.S. beef is subject to as a result of the U.S. not being part of the Trans-Pacific Partnership.
Japan is the top export market for U.S. beef, with more than $2 billion sold last year. Without a bilateral agreement, the tariff advantage held by Australia, New Zealand, Canada and Mexico over the U.S. will continue to grow. According to the U.S. Meat Export Federation, if a trade deal is not reached with Japan, U.S. annual beef export losses will reach $20.40 per head by 2023 and $43.75 per head by 2028, compared to today.