The U.S. and Japan have agreed in principle to a trade deal. In a report from Gary Crawford, President Donald Trump talks about the new agreement.
Secretary Perdue on Japan Agreement
Washington, D.C. (USDA) – U.S. Secretary of Agriculture Sonny Perdue issued the following statement regarding the new trade agreement between the United States and Japan:
“Japan is a significant market for United States agriculture exports, making today a good day for American agriculture. By removing existing barriers for our products, we will be able to sell more to the Japanese markets. At the same time we will able to close gaps to better allow us to compete on a level playing field with our competitors. I thank President Trump and Ambassador Lighthizer for their constant support of America’s farmers and ranchers and their hard work negotiating better trade deals around the globe.”
Source: U.S. Department of Agriculture
Progress on Japan Negotiations Good News
(AFBF) — The following statement may be attributed to American Farm Bureau Federation President Zippy Duvall:
“America’s farmers and ranchers are pleased to hear that the U.S. and Japan may be close to a trade deal that includes agriculture. This is much-needed good news on the agricultural trade front.
“Top U.S. agricultural exports to Japan currently include beef, corn, pork, soybeans and wheat. We appreciate the Administration’s work to secure greater access for these farm goods and others.
“We look forward to reviewing the details of the agreement.”
Source: American Farm Bureau Federation
Statement Re: Japan & U.S. Agreement
(CWC) — California walnut producers welcome news from the Administration that a “trade deal in principal” has been reached between the United States and Japan. This announcement by U.S. Trade Representative (USTR) Robert Lighthizer that a preliminary agreement includes agriculture is testament to the steadfast commitment of the Administration in bringing fair, equitable and reciprocal trade to our producers. Although details are pending, California walnut producers eagerly await the specifics which may benefit California’s 4th leading export from the state. The California Walnut Commission (CWC) has remained engaged with USTR throughout the process, most recently with the Administration’s formal announcement of its intent to negotiate, advocating for lower tariffs for walnuts which currently stand at 10%. Previously, under the terms of the Trans-Pacific Partnership (TPP), from which the U.S. withdrew, walnut tariffs were to be eliminated. Walnut producers are hopeful the terms of this new agreement will bring similar relief but applaud negotiators for their successes, as yet to be revealed.
Japan is the 4th leading export market for the California walnut industry, accounting for more than 80 million inshell equivalent pounds annually, valued at over $90 million dollars. In the current 18/19 crop season, the Japanese market accounts for nearly 6% of the industry’s total shipments, with over 34.3 million shelled pounds shipped to date. Over the last five years the Japanese market has grown 44% despite a ten percent duty. The potential for duty reduction would greatly afford new opportunities for market growth for California’s 4,800+ walnut growers and over 90 walnut processors.
The CWC has remained actively engaged with United States Trade Representative (USTR), United States Department of Agriculture (USDA) and Congressional Representatives to ensure the industry’s concerns are at the forefront of negotiations regarding tariff issues as well as non-tariff barriers facing the industry.
Source: California Walnut Commission
U.S. Pork Producers Celebrate Trade Agreement with Japan
WASHINGTON, D.C. (NPPC) – The National Pork Producers Council celebrated a U.S. trade agreement with Japan that, once implemented, will place it back on a level playing field with international competitors in one of its most important export markets. The agreement was announced at the G7 summit in France during a press conference with U.S. President Donald Trump, Japanese Prime Minister Shinzo Abe and U.S. Trade Representative Robert Lighthizer.
“We thank the Trump administration for negotiating a trade agreement with Japan, a market that represented 25 percent of total U.S. pork exports last year,” said David Herring, a pork producer from Lillington, N.C. and president of the National Pork Producers Council. “We look forward to rapid implementation of the agreement as international competitors are currently taking U.S. pork market share through more favorable access,” he said.
“The United States produces the safest, highest-quality and most affordable pork in the world,” added Herring. “It is the preference of many Japanese customers and we look forward to competing on a level playing field again.”
Dr. Dermot Hayes, an economist at Iowa State University, estimates exports to Japan will grow from $1.6 billion in 2018 to more than $2.2 billion over the next 15 years as a result of the United States pork industry getting market access in Japan as favorable as its competitors.
U.S. pork is highly dependent on exports, shipping more than 25 percent of total production to foreign markets. Other NPPC trade priorities include ratification of the U.S.-Mexico-Canada (USMCA) agreement, which preserves zero-tariff pork trade in North America, and resolving trade disputes with China that will enable U.S. pork producers to capitalize on an unprecedented sales opportunity with the world’s largest pork-consuming nation.
Source: National Pork Producers Council
NCBA Hails Announcement of Increased Access to the Japanese Market
WASHINGTON (NCBA) – National Cattlemen’s Beef Association (NCBA) President Jennifer Houston issued the following statement regarding President Trump’s announcement for increased market access to Japan, the top export market for U.S. beef.
“Today is an exciting day for America’s cattlemen and cattlewomen. President Trump and his trade team have delivered another great victory for the U.S. beef industry by expanding market access to Japan, our top export market. Last year, Japanese consumers purchased over $2 billion of U.S. beef, accounting for roughly one-quarter of overall U.S. beef exports. Removing the massive 38.5 percent tariff on U.S. beef will level the playing field in Japan, and we are very thankful to President Trump and his trade team for continuing to fight on behalf of America’s ranching families.”
US Poultry, Egg Industries Welcome Announcement of Japan Trade Agreement
Washington, D.C. (NCC) – U.S. poultry and egg organizations welcome the announcement of a trade agreement between the United States and Japan, an achievement that stands to benefit our industry.
“Frozen chicken, turkey, and processed egg products will receive favorable tariff reductions enabling our products to compete more effectively with those of countries in the Trans-Pacific Partnership,” the USA Poultry & Egg Export Council (USAPEEC), National Chicken Council (NCC), National Turkey Federation (NTF) and United Egg Producers (UEP) said in a joint statement issued Monday.
“While this is just the first stage of a bilateral agreement, it is welcome news and we would like to thank President Trump, Secretary Perdue and Secretary Lighthizer for their work negotiating trade deals that stand to benefit U.S. poultry and egg products.”
Japan is the leading market for U.S. egg product exports, and the second-largest market for U.S. turkey exports. Japan also is a very promising market for U.S. chicken companies that are willing to provide the specific chicken cuts that Japanese buyers are seeking.
Source: National Chicken Council
U.S. Grains Council Statement On Japan Agreement In Principle
(USGC) — A statement from U.S. Grains Council (USGC) President and CEO Ryan LeGrand:
“The U.S. Grains Council is encouraged by the news of an agreement in principle between the U.S. and Japan on agricultural market access. While there are details yet to be worked out, lowering market access barriers with one of our most valuable and loyal grain buyers is a critical win-win.
“Combined with reductions or eliminations in agricultural tariffs that coincide with those under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Japan Economic Partnership Agreement (EU-Japan EPA), a new agreement with Japan will allow our farmers a level playing field with our competitors.
“Japan is a deeply valued trading partner for U.S. grain farmers, currently the second largest buyer of U.S. corn and a significant buyer of U.S. sorghum and U.S. barley for food and feed purposes. Japan is also a partner with which we hope to build a growing ethanol market.
“We look forward to reviewing the final provisions announced this weekend and continue to support the completion of a comprehensive agreement that will include the enhanced sanitary and phytosanitary, good regulatory practices and precedent-setting biotechnology provisions strengthened under the U.S.-Mexico-Canada Trade Agreement (USMCA).”
Source: U.S. Grains Council
Wheat Industry Welcomes U.S. – Japan Trade Deal
Washington, D.C. (USW/NAWG) – President Trump announced a trade agreement in principle between the United States and Japan that will keep exports of U.S. wheat flowing to a very large and crucial market for U.S. farmers.
“We are very happy that this agreement will end the growing competitive cost advantage that Canadian and Australian wheat imports got under the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) agreement,” said U.S. Wheat Associates (USW) Chairman and Paulding, Ohio, farmer Doug Goyings. “We want to say thank you to the negotiators at the U.S. Trade Representative office and at the USDA trade and foreign affairs office for working so hard to prevent more export losses for farmers like me.”
“We applaud the Administration for completing this much needed trade deal with Japan,” stated National Association of Wheat Growers (NAWG) President and Lavon, Tex., farmer Ben Scholz. “This is a huge win for those of us who grow wheat and all U.S. farmers and ranchers.”
“Chief Agricultural Negotiator Gregg Doud and USDA Under Secretary Ted McKinney deserve special recognition for their efforts,” said USW President Vince Peterson. “They immediately understood what was at stake for wheat farmers without a trade deal and made this outcome a priority. We also thank government officials and our flour miller customers in Japan for their forward-thinking approach to the situation.”
U.S. wheat farmers in partnership with USDA’s Foreign Agricultural Service have helped build a strong demand among Japan’s flour millers for several classes of U.S. wheat grown in the Pacific Northwest to the Northern and Central Plains.
However, when the CPTPP was implemented Dec. 30, 2018, without the United States, the effective tariffs on imported Canadian and Australian wheat started to decline. Locked out of the agreement, U.S. wheat imports would have become less and less cost competitive to the point that Japan’s flour millers would have no other choice than to buy the lower cost wheat from the CPTPP member countries.
The new agreement helps protect U.S. exports that represents about 50 percent of the sophisticated and demanding Japanese wheat market, with average annual sales of about 3 million metric tons that are currently worth about $700 million per year.
USW and NAWG believe that resolving such trade issues can again lift the rural economy by opening new markets for our wheat and other agricultural exports and increasing access in existing markets. The organizations would now welcome new trade negotiations such as with countries in the rapidly growing Southeast Asian and South American regions.