In 2018, the United States exported $2.1 billion worth of beef and beef to Japan. Japan is the largest export market for beef from the United States by value. Under the agreement, the United States will benefit from market access conditions equivalent to CP-TPP countries, with tariffs on fresh, chilled and frozen beef reduced from 38.5% to 9% within 15 years. In addition, Japan will eliminate tariffs on processed beef products, including Jerky beef and meat extracts, of up to 50% within 5 to 15 years. U.S. exports of beef and beef products to Japan currently have a competitive disadvantage. Major U.S. competitors in the Japanese market, including Australia, Canada and New Zealand, receive preferential market access treatment under the CP-TPP. The U.S.-Japan trade agreement is necessary to keep U.S.
beef and beef exports competitive. Australia`s red meat and livestock industry has been one of the main beneficiaries of the free trade agreements concluded so far. This included reducing or eliminating tariffs, as well as improving other measures that previously restricted trade. For example, it is estimated that the benefits of the three North Asian Free Trade Agreements between Australia – Korea (KAFTA), Japan (ALA) and China (ChAFTA) – will result in a total value added of $20 billion for Australian industry over the next two decades. Brexit poses great challenges for New Zealand`s red meat sector. The EU is an important market for New Zealand red meat and its by-products and is worth almost NZ$2 billion in 2018. As an important export sector, changes in access to overseas markets affect the profitability of both individual producers and meat processors. About three-quarters of Australia`s red meat is now consumed in overseas markets. Access to a multitude of global markets allows Australian exporters to maximize the value of each carcass and reduce the risk of over-reliance on a buyer. Dynamic international market conditions require continued efforts to defend access and, where possible, improve export conditions through trade reforms. USMEF predicts that by 2025, U.S.
red meat exports to Japan will reach US$5 billion — about $2.8 billion for U.S. beef and more than $2 billion for U.S. pork — as U.S. red meat consumption increases due to better access for Japanese consumers and the U.S. gains market share. The agreement also opens up new opportunities for value-added and processed red meat products, with tariffs on these products increasing to zero, contributing to the overall growth of U.S. exports to the high-quality Japanese market. However, many of Australia`s overseas markets remain subject to an entry barrier. These barriers to trade are imposed in many forms….