The USDA’s Economic Research Service in a recent report, “Tariff Reforms and the Competitiveness of U.S. Beef in Japan,” said the United States is at risk of losing $100 million in beef exports to Japan as a result of the Japan-Australia Economic Partnership Agreement that took effect last year.
Under the trade agreement, Japan will reduce tariffs for Australian beef over a 15-year period. When the agreement is fully implemented and no other events intervene to influence trade, Australian beef exports to Japan would increase by $100 million while U.S. beef exports to Japan would drop by $100 million. The Trans-Pacific Partnership trade agreement would level the playing field and ERS projects a $130 million net gain for U.S. beef.