NCBA Calls for Sense of Urgency in Trade Deal Negotiations with Japan as Competition StiffensThu, 11 Oct 2018 10:35:40 CDT
The US beef cattle industry welcomed the recent news of an accord between President Donald Trump and Japan’s Prime Minister Shinzo Abe to begin negotiations on a bilateral trade agreement. National Cattlemen’s Beef Association Director of International Trade and Market Access Kent Bacus says with Japan as the No. 1 export market for the US beef industry, the success of getting this trade deal done and getting it done quickly, is very important to the health of the beef industry and producers’ bottom lines.
“We face a 38.5 percent tariff in the Japanese market. Just like the Korean market, that’s one of our biggest hinderances. Once we can get that out of the way - we’ve already focused on developing the Japanese consumer over the last several years. That’s become a very important market to us; our biggest export market by far.”
According to Bacus, the Japanese market accounts for approximately 25 percent of our beef export sales, close to $2 billion in a market. Bare in mind, Bacus says, that is with a 38.5 percent tariff which means opportunity abounds in that market to develop the supply chain there and its consumer base even more. Whether the terms of beef trade will come up at the front end, the back end or somewhere in the middle of the negotiation process remains unknown at this time, but Bacus insists it is a matter that NCBA will strongly push for the US negotiators to address.
“I think the thing to keep in mind is that a lot of other people see Japan as a very important market. There’s already a lot of competition there that could affect our long-term success in that market,” he said. “That’s why we need to move quickly to establish a free trade agreement with the Japanese. The timing on this is going to be very important so that’s why this Japan trade agreement is one of the top priorities for us at NCBA.”
Listen to Bacus discuss the importance of establishing a bilateral trade agreement with Japan, with Radio Oklahoma Ag Network Farm Director Ron Hays, on today’s Beef Buzz.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
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