arashitranslation | 17.07.31 News Zero Ichimen - Activation of Safeguard Against US Beef

Activation of Safeguard Against US Beef

Used in Japan “grilled meat” and “gyudon” as well,
frozen beef from the US.
Because the import is increasing rapidly,
from 1 August 2017, for the first time in 14 years
a mechanism called “safeguard” is activated.

In fact, this is also related to a decision made by President Trump…
What will happen?

In general “safeguard”
is a mechanism which is activated
when there is “rapidly increasing import” of goods such as agricultural products.

When there is rapid increase in cheap imported goods
the domestic goods are not sold,
the dealers and producers in the country will receive damage in business.

Therefore, when the “import tariff” which acts as a barrier during import
is increased temporarily,
it will act as a “defend” or “guard”,
not only in Japan
it is recognised as an international rule.

By the way, thus far the safeguard
is activated in regard to “beef” and “pork”
furthermore there was also provisional activation
in regard to “green onion”, “shiitake mushroom”, and “tatami”.

This time, the subject of the safeguard is,
“beef from the US” which accounts for
around 33% of the “frozen beef”.

While the largest share is “beef from Australia” which is around 56%,
because of the EPA, Economic Partnership Agreement with which Japan makes active trade
it is “out of the target” of the safeguard.

The period of the safeguard will be from 1 August 2017 to 31 March 2018.

For example for one ton of US frozen beef which costs 4 million yen.
Thus far the import tariff is 38.5%
it was imported with a total amount of “5.54 million yen”.
However, because the import tariff is increased to 50%,
the total amount will become “6 million yen”.

Because the burden for the Japan importers will increase,
whether to “increase price”, or to work hard with “business effort”,
or to change the “import country”,
they are now urged to make decision.

We interviewed the on-site voices.

Around 30% of orders made in this grilled meat restaurant,
are said to be about menu using US frozen beef.

◇ Gyu Shige Dream System Co. Ltd.
　Product Director, Iino Kimitoshi-san

“As the safeguard takes place and the import tariff increases,
　the purchase price rises by approximately more than 10%,
　it is indeed tough…”
“Somehow we hope to absorb the cost internally without raising the price,
　with the ideas targeting this goal
　I hope somehow we can get over this.

At this supermarket, not only frozen meat are sold,
not being the subject of price increase this time,
the refrigerated meat are mainly sold here.

Because the influence is small,
it said that it will not raise price immediately,
on the other hand…

◇ Super Izumi Narihira Shop
　Butcher Chief, Wagatsuma Takao-san

“If the (frozen) quantity decreases, next time the decreased quantity,
　next time, if it is shifted to
　chilled (refrigerated) meat
　I think somehow there will be
　wave (of increase of price) for the chilled meat as well”

When there is increase in price on frozen meat,
there may be increase in price on refrigerated meat as well
there was such anxious voice.

Besides the three major gyudon chains, regarding the change of price,
replied with “we have not made decision”.

On the other hand, there is criticism from the US.
Following the increase in import tariff,
The Department of Agriculture issued a statement,
“This will harm the important trade relationship with Japan”.

In fact, this time the activation of the safeguard,
is also related to a decision made by President Trump.

That decision is the “TPP Withdrawal” announced in January 2017.

Because, if the “TPP” Trans-Pacific Partnership Agreement
is in effect as planned,
the safeguard this time would not be activated.

Instead “TPP” would introduce a new mechanism,
since the beef import tariff would be gradually lowered,
from the US side, the export of beef would be easier
it was supposed to function like this.

In other words, President Trump’s “TPP withdrawal”
became an act of cutting his own throat.

In addition, the main reason behind the activation of safeguard this time was also,
the influence of “drought” occurred in Australia.

Because the export of Australian beef decreases,
the import from US beef increased rapidly recently.
Therefore, by activating the safeguard,
the domestic industry was protected.

Thus it can be seen that an event happened in this world,
also influences the beef in Japan.

Source: News Zeroイチメン (http://www.ntv.co.jp/zero/ichimen/2017/07/201781143356epa20178120183311385554506003-1-320171tpptpptpptpp.html)