ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
International relations

Japan to grant lower tariff on 90% of US beef imports

Duties would fall to TPP levels if Washington signs a trade deal this year

Japan plans a gradual reduction in tariffs on about 90% of current beef imports from the U.S.   © Reuters

TOKYO -- Japan will permit low import tariffs on about 240,000 tons of American beef as part of the trade negotiations with the U.S., hoping to ink a deal by the end of September, Nikkei has learned.

The quota covers roughly 90% of the amount of American beef that Japan currently imports. Those shipments now face a 38.5% tariff, but the rate would fall gradually to 9% by fiscal 2033. The quota itself eventually would rise to 290,000 tons.

If Washington and Tokyo sign a trade deal before the end of 2019, Japan could reduce the tariff to 26.6% in the first year to match the rate applied to countries in the regional Trans-Pacific Partnership trade pact. The tariff rate already is declining for TPP members.

To mitigate the impact on domestic producers, Japan will set a safeguard to prevent a surge in shipments. Japanese beef exports to the U.S. will be eligible for lower tariffs as well.

Tokyo negotiated a low-tariff quota of 600,000 tons for beef imports covering members of the TPP, a figure that remained intact even after the U.S. withdrew from the framework. The additional quota granted to the U.S. means up to 840,000 tons of beef entering Japan will enjoy lower tariffs.

Japan hopes to renegotiate the TPP quota, since shipments from Australia and other members came in at 360,000 tons in fiscal 2018, below the TPP quota cap. Tokyo aims for an agreement within three years after its trade deal with the U.S. takes effect, but Australia so far has opposed the idea.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media