Japan and the United States will work together with this agreement to agree on the adaptation of withdrawal conditions into two scenarios. First, Japan and the United States will begin consultations in the fourth year of the agreement if Japan negotiates changes to the protection measure with the CP-TPP countries. Second, Japan agrees to consult consultations to align the level of security triggering applicable to a higher level if protection is ever triggered. The consultation mechanism is developed in an alternative letter. The agreement, agreed in principle in August and confirmed in September, was approved by Japan`s upper house of parliament, the regional parliament, and is expected to be signed next week by U.S. President Donald Trump, with the agreement due to enter into force on January 1, 2020. UsmEF slides with the most important details of the agreement are available online. For any questions, please contact Erin Borror. In 2018, the United States exported $2.1 billion worth of beef and beef products to Japan. Japan is the largest U.S. beef export market, based on value. Under the agreement, the United States will benefit from market access conditions equivalent to CP-TPP countries, with tariffs on fresh, chilled and frozen beef reduced from 38.5% to 9% within 15 years.
In addition, within five to fifteen years, Japan will eliminate tariffs on processed beef products, including beef and meat extracts, of up to 50%. After the U.S. withdrawal from the TPP, the other 11 nations began negotiations and formed the CPTPP. The new group suspended 22, largely the U.S. priority, from the provisions of the original text of the TPP. When the CPTPP came into force in December 2018, tariffs on imports of chilled and frozen beef into Japan increased from 38.5% to 27.5% (Williams, Cimino-Isaacs and Regmi, 2019), resulting in a competitive disadvantage for the United States. In order to strengthen potential competition from CPTPP countries, Japan concluded an EPA with the European Union (EU) in February 2019 that would reduce Japan`s tariffs and non-tariff barriers on imports from EU countries, particularly for agricultural products. With regard to beef, the EU EPA and Japan would allow the EU to significantly increase its beef exports to Japan and tariffs on beef would rise from 38.5% to 9% in 15 years (European Commission, 2018). Under these agreements, CPTPS and EU beef suppliers have also moved from quarterly safeguards that trigger 50% snapback tariffs to annual cover with 38.5% snapback tariffs, which decrease over time (US).