Source: Rita Jane Gabbett, MEATINGPLACE, 11/3/17


The Trans-Pacific Partnership moved forward over the weekend as the 11 remaining members agreed on core elements for a new framework without the United States, which pulled out of the pact in January.

Once the new deal is implemented, U.S. meat exports could be left at a disadvantage, as the agreement would lower tariffs for goods traded among members.

“Leaving TPP left the United States at a disadvantage,” U.S. Meat Export Federation CEO Philip Seng said last month in a conference call with journalists.  He noted that U.S. competitors like Australia are paying much lower duties to export their meat products in many Asian markets than U.S. producers pay to export their goods. “The only bad trade agreement is the one you’re not in,” said Seng.

Japan trade in jeopardy
The U.S. meat industry is hoping the Trump administration will negotiate a bilateral agreement with Japan, a major importer of U.S. beef and pork, but so far Japan has shown little interest.

U.S. beef exports to Japan were dealt an additional blow in July when rising imports of U.S. frozen beef in the first quarter triggered an automatic increase to Japan's tariff rate from 38.5 percent to 50 percent, effective Aug. 1, 2017 through March 31, 2018. 

The move widened the tariff disadvantage to Australian beef, which remains at the current rate of 27.2 percent, as established in the Japan-Australia Economic Partnership Agreement (JAEPA).

TPP, when enacted, could further ease trade among its 11 members: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

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