The U.S. and Japan agreed to increase the beef safeguard trigger level under the U.S.-Japan Trade Agreement, the Office of the U.S. Trade Representative said.
The new three-trigger safeguard mechanism will allow U.S. exporters to meet Japan’s growing demand for high-quality beef and make it difficult for Japan to impose an emergency tariff hike on beef imports to protect its domestic market, long a sore point for U.S. meat exporters who have been seeking greater access.
“This agreement is a great win for our two countries that ensures American farmers and ranchers can continue to meet Japan’s growing demand for high-quality U.S. beef,” USTR Katherine Tai said.
The agreement includes a new three-trigger mechanism by which all three triggers must be hit in order for Japan to implement the safeguard and impose a higher tariff. The three triggers are:
- Imports from the U.S. must exceed the original beef safeguard trigger level under the U.S.-Japan Trade Agreement;
- The aggregate volume of beef imports from the United States and the original signatories of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) must exceed the CPTPP beef safeguard; and
- Imports from the United States must exceed the total amount of beef imports from the United States during the previous year.
Both governments will work to finalize the text of the agreement reflecting the new trigger levels and complete their respective domestic procedures.
Japan raised its “safeguard” duty on U.S. beef to 38.5% from 25.8% in March of last year for 30 days after U.S. beef imports exceeded the safeguard trigger.
“This is a positive development for America’s farmers and ranchers. It allows for greater market-based growth in U.S. beef exports to Japan and reduces the probability of higher Japanese tariffs being imposed on U.S. goods,” U.S. Secretary of Agriculture Tom Vilsack said. “America’s farmers and ranchers have beef products that can compete anywhere in the globe and this announcement will allow them to demonstrate just that.”
In 2021, the U.S. was the top beef-exporting country in the world, with global sales of beef and beef products valued at over $10 billion.
Exports of U.S. beef to Japan totaled almost $2.4 billion in 2021.