New Year’s Day Brings Implementation Of Two Important Trade Deals
Courtesy of kla.org
Two trade deals that will have a positive impact on U.S. beef producers went into effect January 1. These agreements will bring new opportunities and better access to Japan and the European Union (EU), two major export markets for the U.S.
The new deal with Japan immediately lowered the tariff on U.S. beef from 38.5% to 26.6%, and it will eventually drop to 9%. This puts the U.S. on a level playing field with other countries that export to Japan under the Trans-Pacific Partnership.
The trade agreement with the EU establishes a duty-free quota for high-quality U.S. beef from non-hormone treated cattle. Under the terms of this agreement, the U.S.-specific annual quota will increase from 18,500 metric tons in the first year to 35,000 metric tons in year seven. The Office of the U.S. Trade Representative estimates that this quota will increase annual U.S. beef sales in Europe from $150 million to $420 million.
NCBA played an integral role in building support for increased access to these two countries. According to NCBA President Jennifer Houston, the organization will continue their efforts to improve access to lucrative international markets like China and push for final approval of the U.S.-Mexico-Canada Agreement as soon as possible in 2020.