Tar­iff deal could be a win­ner for Aussie beef

Warwick Daily News - South West Queensland Rural Weekly - - The Mulberry Project -

FROZEN Aus­tralian beef will be as­sisted with a con­sid­er­able tar­iff ad­van­tage in Ja­pan for the eight months lead­ing up to March 31 next year ac­cord­ing to Meat and Live­stock Aus­tralia.

The safe­guard for the Ja­panese fis­cal year quar­ter one was trig­gered on Au­gust 1 this year, mean­ing the tar­iff on frozen beef im­ported to Ja­pan from the US and other na­tions without an Eco­nomic Part­ner­ship Agree­ment (NZ, Canada) snapped back to 50% un­til March 31, 2018.

In con­trast, frozen Aus­tralian beef will face a 27.2% tar­iff un­der the Ja­pan-Aus­tralia Eco­nomic Part­ner­ship Agree­ment (JAEPA).

How­ever, so far, the tar­iff dif­fer­en­tial has yet to slow US beef im­ports down.

In fact, the lat­est data in­di­cates that the four weeks after the snap­back have seen the largest US ex­ports to Ja­pan for 2017 to date.

While the tar­iff dif­fer­en­tial will no doubt lead to some in­creased in­quiries for Aus­tralian beef, there are also a num­ber of rea­sons to be cau­tious in­clud­ing stiff com­pe­ti­tion from the United States, the high Aus­tralian dol­lar and Ja­pan mak­ing use of other pro­tein op­tions in­clud­ing pork.

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