In 2020, the U.S. exported $1.6 billion of pork products to Japan – a 6.7% increase from 2019 – making Japan the No. 2 overseas market for U.S. pork.
“The Japanese market has been very important to U.S. pork producers for many years and has often ranked as the top U.S. pork export market by value. The phase one Japan trade agreement, which went into effect on Jan 1, 2020, helped place U.S. pork back on a level playing field with competitor nations,” says Maria Zieba, National Pork Producers Council assistant vice president of international affairs.
Under the U.S.-Japan Trade Agreement, the U.S. obtained tariff treatment for pork equal to the countries in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Japan applies U.S.-specific safeguards for carcasses/half carcasses, meat and prepared pork products. The safeguard for meat started at 112% of the highest import volume of the previous three years. If the safeguard volume is surpassed, tariffs on certain U.S. pork exports will increase for the remainder of that year. The safeguard will be eliminated in Year 10 (2028).
In USDA’s recent Foreign Agricultural Service Global Agricultural Information Network (GAIN) report, it noted that although the agreement has officially been in effect for 16 months, due to the timing of Japan’s fiscal year, the agreement entered Year 3 of implementation on April 1, 2021.
USDA’s GAIN report highlights the tariff benefits for specific commodities and products from Year 3 (beginning April 1, 2021) to Year 5 (2023) of the agreement.
The report indicates chilled frozen meat above 524 yen/kg has a base rate of 4.3% and will drop from an additional 1.4% tariff in 2021 to no tariff in 2027. Processed pork products, including ground seasoned pork, has a base rate of 20% and will drop from a 6.6% tariff in 2021 to free in 2023. Prepared pork, including ham and bacon, above 897.59 yen/kg has a base rate of 8.5% and will drop from an additional tariff of 2.7% in 2021 to free in 2028.
“Pork is one of the most popular protein choices for Japanese households and is likely to overtake fish as the most consumed protein within the next few years. Ground seasoned pork (GSP) is a key ingredient for domestic sausage manufacturers. The U.S.-Japan Trade Agreement puts the U.S. on equal tariff footing with other major pork suppliers like Canada and the European Union,” USDA noted in the report.
“U.S. pork is well-positioned to expand market share in Japan, providing high-quality, low-cost protein to Japanese consumers,” Zieba says.
Additional information is available at www.usdajapan.org/usjta/.
More from Farm Journal’s PORK:
U.S. Pork in Japan: Chilled and Ground Seasoned Pork Are Major Drivers
