US Japan reach trade agreement regarding beef

By: Sydney Sheffield 

The United States and Japan have come to an agreement regarding the increase in beef safeguard trigger level under the U.S.-Japan Trade Agreement. This trade agreement was originally signed by President Trump in 2019 to improve market access for certain agricultural and industrial goods. 

“This is a win-win for American ranchers and Japanese consumers,” said United States Ambassador to Japan, Rahm Emanuel. “It ensures certainty for years and shows American beef can compete and win anywhere anytime.”

The new three-trigger safeguard mechanism will allow U.S. exporters to meet Japan’s growing demand for high-quality beef and reduce the probability that Japan will impose higher tariffs in the future. The three triggers include:

1. Imports from the United States must exceed the original beef safeguard trigger level under the U.S.-Japan Trade Agreement.

2. 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

3. Imports from the United States must exceed the total amount of beef imports from the United States during the previous year.

Both governments are in the process of finalizing the text of the agreement to reflect the new trigger levels and complete their respective domestic procedures. The United States, in consultation with Japan, will publish the final text of the agreement. In 2021, the United States was the top exporter of beef globally and exports of U.S. beef to Japan totaled almost $2.4 billion. 

“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,” said U.S. Agriculture Secretary Tom Vilsack.

The beef industry welcomes the new trigger safeguard mechanisms. “While the details of the agreement in principle have not been disclosed, NCBA is encouraged that today’s announcement means we are taking necessary steps to secure long-term solutions that enable American cattle producers to continue providing Japanese consumers with high-quality U.S. beef at competitive prices,” said Kent Bacus, NCBA Senior Director of International Trade and Market Access. “NCBA greatly appreciates Ambassador Tai’s leadership and the hard work of negotiators who have been working on this effort for the past year.”