Illustration: Wagyu beef, one of the most well-known Japanese beeves. (Image via TokyoSpark)

Low tariff for Japanese beef

On Monday (16/9), a Japanese official revealed that the United States (US) and Japan had agreed to sign a deal that would change the export-import game between the two allies.

The Americans are craving for more of Japanese beef, and the Japanese are taking advantage of the craze to export more. The US, on the other hand, also wants to import more Japanese beef.

Currently, the US sets 200 tons of Japanese beef import quota. If the export exceeds the quota, there is a 26.4% tariff imposed on the export. Japanese beef export to the US had been rising in recent years. In 2015, the export exceeds the quota by 206 tons. In 2018, it grew to 421 tons. Not even reaching the Q1 of 2019, the export had already exceeded the quota.

However, the condition might change. The US is ready to include its East Asian ally to the list of countries such as Australia, New Zealand, and Canada where the quota is no longer imposed. Therefore, Australia, New Zealand, Canada, and Japan may be able to import as much as 64,000 tons in total with the tariff as low as US$4.4 (¥5). Japan would also erase tariff for US wine from 15%, or ¥125 per liter.

The Japanese Ministry of Agriculture, Forestry, and Fisheries tabulated that the average price of Japanese beef export is ¥8,000. With the 26.4% tariff, the price goes to ¥6,000. Therefore, the Ministry hoped that the deal would take Japanese beef to the next level in the US.

Both country leaders would be finalizing the deal in the upcoming 74th Session of the United Nations (UN) General Assembly in New York.

Previously, the US – once joined the Trans-Pacific Partnership pact – agreed to sign a 3,000 tons’ duty-free quota. However, because the US withdrew from the pact in 2017, it never happened. Japan, on the other hand, agreed to reduce the 38.5% tariff to 9% for the US beef.

Source: https://the-japan-news.com/news/article/0006008888