Tariff deal could be a winner for Aussie beef
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.