Japan | Japan Imposes Safeguards On Beef And Pork Imports Despite Criticism |...

Published: Aug 29, 2003

Japan

Japan Imposes Safeguards On Beef And
Pork Imports Despite Criticism

As anticipated, Japan announced today that emergency safeguard tariffs will be imposed on beef and pork imports as of August 1, despite widespread criticism from international suppliers, Japanese retailers and consumers. The tariff on chilled beef imports increases from 38.5 percent to 50 percent effective August 1 until the end of Japan's fiscal year, March 31, 2004. The chilled beef tariff increase was announced upon the release of Japan's June import statistics this morning: Japan imported 72,748 metric tons (mt) of chilled beef for the quarter, exceeding the safeguard trigger level of 63,564 mt per quarter.

Frozen beef imports will not be affected this quarter as their safeguard trigger was not reached; this is good news for Japanese family restaurants serving popular “gyudon” beef bowls relying on frozen beef imports. But the Japan Foodservice Association (JFA) publicly opposes the safeguard tariff hike for its detrimental effect on Japanese consumers and the economy. Japan's government said domestic retail beef prices could rise 2.5 percent due to the tariff increase, and it will closely monitor wholesale, retail and menu prices to prevent unfair price hikes falsely attributed to the tariff. The U.S., Australia and several other beef exporting countries have all expressed their opposition to the safeguards.

Japan also announced today that its pork safeguard will be triggered following the release of June pork import figures that push the quarterly cumulative import total above the safeguard trigger level of 220,706 mt. Effective August 1 until March 31, 2004, Japan's pork safeguard increases the government-mandated pork gate price 24.6 percent from 524 yen per kg to 653 yen per kg. The gate price will remain at 653 yen per kg until the beginning of the next Japanese Fiscal Year (JFY) on April 1, 2004.

The tariff increase was headline news in Japan today; USMEF-Japan Director of Projects Development and Communication Sam Harada was interviewed by Japanese TV concerning the widespread criticism of the safeguards. The Japanese media have been sharply critical of the government's rationale for implementing the safeguard on chilled beef despite depressed 2002 import values after Japan's BSE outbreak in Fall 2001. Although WTO rules allow Japan to implement safeguard barriers if cumulative quarterly imports surge, Japanese beef imports dropped 40 to 60 percent in 2002 due to BSE concerns and are only now recovering to previously normal levels.

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Japan

Japan Imposes Safeguards On Beef And
Pork Imports Despite Criticism

As anticipated, Japan announced today that emergency safeguard tariffs will be imposed on beef and pork imports as of August 1, despite widespread criticism from international suppliers, Japanese retailers and consumers. The tariff on chilled beef imports increases from 38.5 percent to 50 percent effective August 1 until the end of Japan’s fiscal year, March 31, 2004. The chilled beef tariff increase was announced upon the release of Japan’s June import statistics this morning: Japan imported 72,748 metric tons (mt) of chilled beef for the quarter, exceeding the safeguard trigger level of 63,564 mt per quarter.

Frozen beef imports will not be affected this quarter as their safeguard trigger was not reached; this is good news for Japanese family restaurants serving popular “gyudon” beef bowls relying on frozen beef imports. But the Japan Foodservice Association (JFA) publicly opposes the safeguard tariff hike for its detrimental effect on Japanese consumers and the economy. Japan’s government said domestic retail beef prices could rise 2.5 percent due to the tariff increase, and it will closely monitor wholesale, retail and menu prices to prevent unfair price hikes falsely attributed to the tariff. The U.S., Australia and several other beef exporting countries have all expressed their opposition to the safeguards.

Japan also announced today that its pork safeguard will be triggered following the release of June pork import figures that push the quarterly cumulative import total above the safeguard trigger level of 220,706 mt. Effective August 1 until March 31, 2004, Japan’s pork safeguard increases the government-mandated pork gate price 24.6 percent from 524 yen per kg to 653 yen per kg. The gate price will remain at 653 yen per kg until the beginning of the next Japanese Fiscal Year (JFY) on April 1, 2004.

The tariff increase was headline news in Japan today; USMEF-Japan Director of Projects Development and Communication Sam Harada was interviewed by Japanese TV concerning the widespread criticism of the safeguards. The Japanese media have been sharply critical of the government’s rationale for implementing the safeguard on chilled beef despite depressed 2002 import values after Japan’s BSE outbreak in Fall 2001. Although WTO rules allow Japan to implement safeguard barriers if cumulative quarterly imports surge, Japanese beef imports dropped 40 to 60 percent in 2002 due to BSE concerns and are only now recovering to previously normal levels.