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Japan

April Imports Suggest Pork Safeguard Will Be Triggered

The Japanese Pork Safeguard looks likely to trigger after the first quarter of Japan's April-March fiscal year.  Recently released Japanese import data for April show monthly pork imports at 102,479 metric tons (mt).  With two months left in the first quarter, cumulative imports are only 118,227 mt short of the safeguard trigger level of 220,706 mt.  The triggering of the safeguard, and the resulting 24.6 percent increase in the gate price from 524 yen per kg to 653 yen per kg, appears imminent.  Once triggered, the Japanese government will raise the gate price on August 1 and it will remain at 653 yen per kilogram until the beginning of the next Japanese Fiscal Year (JFY) on April 1, 2004.

Chilled And Frozen Beef Safeguards Possible August 1

Japan's April total beef imports were about 29 percent higher than those of April 2002, but, still feeling the effects of Japan's BSE cases, 23 percent less than April 2001.

Japan also employs a beef safeguard to regulate its beef imports. The beef safeguard is separated into frozen and chilled. Chilled beef imports, although about 21 percent less than two years ago, are about 40 percent higher than April 2002, and the chilled beef safeguard may be imposed on August 1. Japan imported 25,132 mt of chilled beef in April and is expected to import similar amounts in May and June, easily exceeding the 63,564 mt trigger level for the quarter.

The frozen beef safeguard is less likely to be triggered due to a sharp reduction in imports of U.S. short plate after heavy short plate imports in March, but if May and June imports exceed the 67,639 trigger level, the tariff will rise from 38.5 percent to 50 percent on August 1. In both cases, if triggered the beef safeguard 50 percent tariff rate will remain in place until April 1, 2004. USMEF-Japan reports that Japanese importers may postpone some frozen beef imports to avoid triggering the frozen beef safeguard. The Japanese trade is closely watching the monthly level of beef and pork imports. The likelihood of triggering the pork and chilled beef safeguards means the trade would like to avoid the additional costs arising from the frozen beef safeguard.

Japan

April Imports Suggest Pork Safeguard Will Be Triggered

The Japanese Pork Safeguard looks likely to trigger after the first quarter of Japan’s April-March fiscal year.  Recently released Japanese import data for April show monthly pork imports at 102,479 metric tons (mt).  With two months left in the first quarter, cumulative imports are only 118,227 mt short of the safeguard trigger level of 220,706 mt.  The triggering of the safeguard, and the resulting 24.6 percent increase in the gate price from 524 yen per kg to 653 yen per kg, appears imminent.  Once triggered, the Japanese government will raise the gate price on August 1 and it will remain at 653 yen per kilogram until the beginning of the next Japanese Fiscal Year (JFY) on April 1, 2004.

Chilled And Frozen Beef Safeguards Possible August 1

Japan's April total beef imports were about 29 percent higher than those of April 2002, but, still feeling the effects of Japan’s BSE cases, 23 percent less than April 2001.

Japan also employs a beef safeguard to regulate its beef imports. The beef safeguard is separated into frozen and chilled. Chilled beef imports, although about 21 percent less than two years ago, are about 40 percent higher than April 2002, and the chilled beef safeguard may be imposed on August 1. Japan imported 25,132 mt of chilled beef in April and is expected to import similar amounts in May and June, easily exceeding the 63,564 mt trigger level for the quarter.

The frozen beef safeguard is less likely to be triggered due to a sharp reduction in imports of U.S. short plate after heavy short plate imports in March, but if May and June imports exceed the 67,639 trigger level, the tariff will rise from 38.5 percent to 50 percent on August 1. In both cases, if triggered the beef safeguard 50 percent tariff rate will remain in place until April 1, 2004. USMEF-Japan reports that Japanese importers may postpone some frozen beef imports to avoid triggering the frozen beef safeguard. The Japanese trade is closely watching the monthly level of beef and pork imports. The likelihood of triggering the pork and chilled beef safeguards means the trade would like to avoid the additional costs arising from the frozen beef safeguard.