Actions Have Consequences: TPP Fallout With Japan

July 27, 2017 01:12 PM
 
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They say for every action there is a reaction. We are seeing an example of that as Japan prepares to increase its tariff on us frozen beef from 38.5 percent to 50 percent.

U.S. frozen beef exports to Japan have topped 30 percent of their imports more than enough to automatically trigger the increase in place to protect local producers.

 

Obviously U.S. beef is popular in Japan.

While it remains to be seen what impact this will have on U.S. beef prices, the message is clear: lack of trade agreements leave us vulnerable to these types of protectionist moves.

The U.S. and Australia account for 90 percent of Japan’s frozen beef imports. Australia provides more than 50 percent of Japan’s frozen beef, but they are exempt from the tariff increase because they have a free trade agreement with Japan that is reducing tariff levels.

“Repeal” and “replace” are terms often used in the health care debate, but they also apply to trade. The decision by the Trump administration to pull out of the Trans-Pacific Partnership (TPP) repealed the deal for the U.S., but we are still waiting for the bilateral deals to replace it.

The pressure on the Trump administration increases as other countries form trade alliances without the U.S. As we have seen with healthcare, it’s one thing to criticize the current plan but you need to have something better to take its place.

No deal is better than a bad deal, but in this case no deal is a bad deal.

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Comments

 
Spell Check

Keith
Canton, ME
7/28/2017 06:02 AM
 

  No big surprise. Hopefully just a one-off but could also just be the beginning?

 
 
Craig
Kearney, NE
7/28/2017 09:17 AM
 

  Perhaps it's time to match fire with fire and increase our tariffs on Japanese products. It's way past time to stop with the limp wrist responses to actions like these. The Japanese need the U.S. to buy their products also, so we have leverage in cases like this. Trade is a two way street.

 
 
common sense
Bristol, SD
7/28/2017 10:03 AM
 

  Better to lose a little in tariffs than surrender the country! God bless Trump!

 
 

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