News trade agreement
Trump strikes deal with major meat and dairy importer
The United States and Japan recently signed a trade deal that will reduce import tariffs on meat and dairy. This is a boost for cattle and pig farmers in the country, as they are suffering from the trade war with China.
The Japanese import tax on beef will decrease in steps: from 38,5% to 9%. The tariff on luxury pork will even be abolished entirely. The import duty on pig by-products decreases from $4,58 to $0,47 per kilo. In addition to meat, agreements have also been made about dairy, grains, wine and ethanol. No details have been released about this yet.
The deal was announced last weekend at the G7 in France and will be signed by the countries in September. Japan and the United States have been negotiating a bilateral trade deal for some time after US President Donald Trump withdrew from the Trans-Pacific Partnership (TPP) in 2017.
Level playing field
The deal with Japan is more than welcome for the United States, especially since China has tariffs on US beef and pork increased has. According to the USMEF, the American meat federation, the new treaty is great news for the entire meat sector: from producer to exporter.
The United States has traditionally been by far the largest supplier of pork in Japan. However, US exporters have seen sales fall by almost 2019% so far in 10. This is because of the trade deal between the European Union and Japan. Because of this saw The Netherlands sales to Japan increased by 20%. The USMEF expects that the agreement will eliminate the competitive disadvantage with the European Union.
Wouter Job
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