NCBA Japan Holds Great Promise

The U.S. beef industry expects significant gains in its largest foreign market, if the U.S. and Japan reach a new deal in just-agreed-upon trade talks.  From more than 38%, down to 9%, that’s the tariff relief U.S. beef could see from a bilateral trade deal with Japan, based on the TPP deal from which the U.S. withdrew.  National Cattlemen’s Beef Association's Kent Bacus said could mean big new sales.

“Japan is our number one export market, no one competes, volume or value in what we send to the Japanese market, that accounts for about $1.9 billion in sales last year, so this is a great opportunity if we can keep moving forward.”

Bacus can’t put a figure on any sales gain, not wanting to overestimate, but says the timing of tariff relief compared with other competitors’ separate deals with Tokyo, will be a factor.

“What we would want is to be able to be on that same schedule.  I don’t know if that’s going to happen, it’s definitely something we would support, but you know, that’s up to the negotiators.”

It will take months, and for Congress to give the president trade powers to pass a new deal without amendments on an ‘up or down’ vote.  Meantime, Bacus hopes that after deals with South Korea, Mexico and hopefully Canada, other trade deals will also fall into place, giving producers new hope after several very tough years.

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