Iowa Cattlemen Statement on Trade Deal with Japan
Sept. 25, 2019
President Trump and Prime Minister Abe of Japan made another step towards a bilateral trade agreement that is expected to greatly benefit the U.S. cattle industry. The agreement will include significant tariff reductions for U.S. beef imported into Japan.
"This bilateral trade agreement with Japan is significant for two reasons. First, Japan is our number one export market by value, and the Japanese are hungry for U.S. beef," says Matt Deppe, CEO of the Iowa Cattlemen's Association. "Second, a positive advancement on the trade front is good news for all of Iowa agriculture. Hopefully, this momentum will carry forward to the ratification of USMCA and trade talks with China."
International trade adds over $300 to the value of every head of cattle in the state of Iowa, and approximately one-quarter of that value is due to exports to Japan. Currently, U.S. beef faces a 38.5% tariff while competitors from other countries like Australia, New Zealand and Canada have a tariff rate of only 26.6%.