Japan

Japan Vows More U.S. Rice Imports Within Tariff-Free Quota

Wed, 23 Jul 2025 18:15:58 GMT

Japan will import more rice from the United States but within the existing tariff-free quota, Prime Minister Shigeru Ishiba said on Wednesday, stressing Tokyo’s success in protecting the agricultural sector in agreeing a bilateral trade deal.

After months of negotiations, the two countries struck a deal to lower the so-called “reciprocal tariffs” to 15% from a proposed 25%, and said increased rice shipments from the U.S. to Japan was part of that deal.

Under a World Trade Organization (WTO) “minimum access” framework introduced in 1995, Japan imports about 770,000 metric tons of rice tariff-free every year. Last fiscal year, the U.S. accounted for 45% of the total.

“We made absolutely no sacrifice in the agricultural sector,” Ishiba told reporters.

“Import volumes will remain within the minimum access framework and we retain the discretion over how much and what type (of rice) to import from each country,” he said.

Announcing the trade deal on Tuesday in Washington, President Donald Trump said Japan would increase market access to American producers of cars, trucks, rice and certain agricultural products, among other items. Neither country disclosed what other farm products were included, but Ishiba said the deal did not include a lowering of tariffs.

Beyond the minimum access framework, Japan imposes a levy of 341 yen ($2.36) per kg of rice, which has, for the most part, effectively priced imports out of the market.

While these imports have typically been negligible due to Japan’s self-sufficiency for its staple grain, the country has imported historically high amounts over the past year due to a shortage and ensuing spike in the price of home-grown rice.

(Reporting by Kaori Kaneko, Editing by Chang-Ran Kim)

President Trump Threatens New Round of Tariffs Over the Weekend: Here’s the Latest

Tue, 15 Jul 2025 13:09:01 GMT

U.S. commodity markets were down to start the week in Sunday night trade as the markets digested the latest tariff announcement by President Donald Trump. On Saturday, President Trump threatened to impose 30% tariffs on Mexico and the European Union starting on August 1. The announcement came after a string of new tariff threats last week, as the Trump administration’s deadline for trade deals came due.

On Monday, President Trump continued with tariff talk, saying he would implement “severe tariffs” on Russia unless a peace deal is reached with Ukraine within 50 days.

He provided few details on how they would be implemented but described them as 100% secondary tariffs, meaning they would target Russia’s trading partners in an effort to isolate Moscow in the global economy.

The latest tariff threats weren’t good news for farmers looking to price fertilizer for fall, as StoneX Group says Russia is the United States’ top destination for both urea and UAN imports. StoneX points out Russia’s market chair has “grown substantially in recent years.”

Monday’s news follows a week where many anticipated trade deals. Instead, President Trump made a series of announcements with new tariffs. The new tariffs on Mexico and the European Union, which Trump announced Saturday, capped off a week of sweeping tariff threats.

Earlier in the week, Trump warned of a possible:

50% tariff on all copper imports
50% tariff on all goods from Brazil
35% tariff on Canadian goods
25% tariff on goods from Japan
25% tariff on imports from South Korea
200% tariff on imported pharmaceuticals

The positive side of the announcements is the Trump administration says any products covered under the U.S. Mexico Canada Agreement (UMCA) won’t face the new tariffs.

President Trump also sent letters to both Japan and South Korea last week, saying their goods will be taxed at 25% starting August 1st.

The President posted the two letters he sent to those countries’ leaders on his Truth Social site. In the letter to South Korea, he stated when it comes to Korea’s tariff and non-tariff polices and trade barriers, the relationship between the two countries has been far from reciprocal. He added the 25% tariff was far less than what he says is needed to eliminate a trade deficit disparity.

The letter to Japan added if Japanese companies decide to build or manufacture a product within the U.S., there will be no tariffs. Japanese and U.S. negotiators have been working for several weeks to try and reach a deal.

Lack of Progress Impacts Commodity Prices
The lack of trade announcements last week was just one factor that caused corn prices to tank, according to AgMarket.net’s Matt Bennett. While rain in the upper Corn Belt was also bearish for the markets, little to no movement on trade is also pressuring prices.

“We had no trade announcements, and then we continued to talk about tariffs. The unfortunate reality right now is it appears the administration is playing the long game, trying to get people to come to the table with better trade deals than what we currently have seen. But it certainly isn’t doing any favors for the corn market,” Bennett said on U.S. Farm Report this weekend. “I think something like a big trade agreement certainly could tilt the tide more in the favor of the corn market moving higher. Until you get that, with weather being as good as what it is, there’s nothing there.”

It’s not all bearish, though. Arlan Suderman of StoneX Group says the 50% tariff on Brazil is actually bullish for beef.

“We already have a shortage of protein in America with the cattle herd being shrinking over recent years because of lingering drought in the western half of the country, and supplies are tight. We’re just getting to the point of trying to rebuild those supplies, which holding back heifers, tightens up the supply of meat even more. We’re feeding to record-high carcass weights to try to fill the void. We’re increasing imports to record levels. Brazil is the primary supplier of those imports: 27% of our imports come from Brazil in the first five months of the year, according to the latest data we have available, that’s 666 million pounds. That’s 4% of consumption,” Suderman says.

If you think 4% doesn’t sound like a big deal, Suderman says it is - especially considering meat demand in the U.S. has turned out to be inelastic.

“We’ve been shifting from a starch-based diet more heavily toward protein-based. And as the prices go up, we’re actually increasing demand for beef and the other proteins - but we don’t have the supply of it. I think that could be a real problem going forward for the meat industry and the meat supply. We will have to find somewhere else to get that meat,” Suderman says.

Are Trade Deals Close?

While President Trump initially stated he had reached trade agreements with 200 countries, only a few have been officially announced. These include deals with China, the United Kingdom, and Vietnam, however. Negotiations with other countries are ongoing, with the administration extending the deadline for tariff-related negotiations to August 1.

The European Union says it was working on sealing a trade deal with the U.S. by the end of this month, and the European Commission president says the EU was working closely with the Trump administration to reach a deal.

It's Crunch Time: Countries Receive Letters on Tariff Increases as Implementation Date is Extended

Wed, 09 Jul 2025 12:56:20 GMT

It’s crunch time for tariff and trade negotiations. President Trump has stated he won’t extend the 90-day pause on tariffs meaning countries had until July 9 to show good faith in negotiations or face higher tariffs.

On Monday, 14 countries received letters indicating tariff increases of 25% to 40%, including Japan and South Korea.

However, the President also signed an Executive Order delaying the implementation of the increased tariffs until Aug. 1.

Frayne Olson, extension crops economist with North Dakota State University says that provides some wiggle room.

“So, we do have a couple of weeks to try and get some kind of an agreement in place, at least, again, an agreement in principle. It doesn’t have to be the full contract or the full trade agreement, but some kind of agreement in place before August 1.”

Without a deal, tariffs currently at 10% will go back up to the 20% to 49% set on April 2.

The biggest concern lies with Japan and South Korea, who face 25% additional tariffs as they’ve failed to make concessions on ag trade, including rice.

Olson says, “As we start getting really close to the end here, some of these ag products are now rearing their head as being some of the negotiating and sticky portions for these agreements. So, again, that’s why the anxiety is starting to rise.”

The key, he says, is none of these countries have signaled counter measures.

“We haven’t had any retaliation. There’s still time to get some kind of an agreement in place, but the time is running out very quickly,” he says.

So, what are the odds U.S. trade negotiators will reach agreements with these countries?

Joe Glauber, senior research fellow, International Food Policy Research Institute says he’s optimistic about Japan and South Korea because the stakes are high.

“I mean, there’s a lot of impetus for Japan and South Korea to try to get an agreement on some sort of framework agreement.”

But Glauber admits if there is retaliation from these two important trading partners various U.S. ag sectors could be seriously hurt.

“Yeah, both Japan and Korea certainly the grains would be hit very hard, oil seeds would be hit hard in, and soybeans are tough because we are facing, you know, we have this problem right now with China. We have a 23 % tariff on our, on facing US beans going into China. “

Glauber points out, even with the deals already announced with the U.K. and Vietnam, few details are known and these are not full blown binding trade agreements only frameworks.

“So again, you know, what’s of interest to me, you know, is what’s the enforcement for these agreements? How does it work going forward? I mean, again, we’re hoping for the best, obviously, that this results in more access for U .S. farm goods. But you want something that’s lasting as well, not just something that goes for, You know six months or a year or whatever.”

And so in Glauber’s opinion, its too early to know whether or not U.S. agriculture will truly benefit from any of these trade agreements.

Ag Secretary Brooke Rollins Says New Deals May Be Struck Over Tariffs By End of Week

Wed, 09 Apr 2025 00:23:17 GMT

U.S. Agriculture Secretary Brooke Rollins said on Tuesday that new deals could be struck with other countries over trade tariffs by the end of this week.

Rollins made the comments in an interview to Fox News host Bret Baier on the network’s “Special Report” show.

Why It’s Important

President Donald Trump said last week that he would impose a 10% baseline tariff on all imports to the U.S. and higher duties on dozens of other countries, including some of Washington’s biggest trading partners, rattling global markets and bewildering U.S. allies.

After China retaliated with its own tariffs, the United States said on Tuesday that 104% duties on imports from China would take effect shortly after midnight, even as the Trump administration moved to quickly start talks with other trading partners targeted by Trump’s sweeping tariff plan.

“I believe, sincerely, it will be sooner rather than later. I believe we’ll be hearing about new deals that are being struck, perhaps by the end of the week,”

Rollins said, adding 70 countries had reached out to the U.S. for talks.

U.S. stocks dropped on Tuesday for a fourth straight trading day since Trump’s tariffs announcement last week.

The administration has scheduled talks with South Korea and Japan, two close allies and major trading partners, and Italian Prime Minister Giorgia Meloni is due to visit next week.
Trump’s sweeping tariffs have raised fears of recession and upended a global trading order that has been in place for decades.

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I’m Using Technology, Innovation and Music to Keep Farming Alive and Prosperous

Tue, 29 Oct 2024 21:32:26 GMT

By Shuichi Tokumoto: Tottorishi, Tottoriken, Japan

It is a special moment you will never forget when you travel half-way around the world, stand on top of a blue tractor in neon green overalls and play a red guitar—all for a rock ‘n’ roll music video about sustainable farming .

Some might call it audacity. Others foolhardiness. I’ll even confess to a little showmanship.

I would like to suggest, in modesty, that it also calls for courage.

And that’s why I’m so grateful to receive this year’s Kleckner Award for Global Farm Leadership , presented by the Global Farmer Network .

It gives me the courage to risk everything in support of sustainable farming.

I’m a Japanese farmer with big ambitions for myself as a farmer, for my fellow farmers in Japan, and for farmers around the world.

A lot of farmers are born into the business, but not me. I came to it later in life by choice, after periods as a firefighter, a singer, and a board member of an information technology company. Around the time I was prepared to make a career move, I became a father. This made me think about the food we put in our bodies and the ways we produce it, and it led me to farming.

Today, I grow paddy rice, feed corn, azuki beans, buckwheat, and other crops near the city of Tottori.

As someone new to farming, I saw agriculture differently from many of those who grew up in it. I wasn’t bound to the conventional and familiar way of doing things.

One of my goals is to bring more technological innovation to farming. I’m doing that right now with advanced mechanization and digital tools such as Xarvio , which helps me manage my fields with amazing efficiency.

I’m always looking to do more—and that includes applying the power of biotechnology to farming, which many in Japan have questioned even as it has led to huge advances in the United States, Canada, and South America. I founded the Japanese Biotech Crop Network to introduce GMOs, gene editing, and more to Japanese farmers and the government as safe and sustainable choices.

Technology gives farming a bright future, but many young people resist it. This is a global trend and it is especially noticeable in Japan, where the average age of farmers is 67— the oldest in the world .

We can view this as a problem, but I see it as an opportunity. As Japanese farmers continue to age, farmland will become increasingly available. I plan to acquire as much as I can, growing from about 110 hectares now to 1000 hectares in 2030.

My farm is already one of the most productive agricultural corporations in Japan, and it’s going to get bigger and better.

I’m using technology and innovation to keep farming alive and prosperous—and I won’t be bound by the conventional ideas that have kept so many farms small and set in their ways.

Instead, I’ll adopt the best ideas from around the world.

Through my membership in the Global Farmer Network , I learned about no-till farming, which means disrupting the soil as little as possible as we plant, protect, and harvest crops. Instead, we guard the soil with cover crops and utilize machinery that do not disrupt the soil as we plant the crops. The result is that our fields are full of moisture and microbes, allowing us to grow more and better food.

No-till farming is ordinary in many places, including Brazil, where I examined it firsthand on the farm of Vicente Bissoni Neto , who is also a part of the Global Farmer Network. His farm is totally unlike mine in size and climate, but I came to believe that no-till can work in Japan, where it is virtually unknown.

I’m trying it now by direct-seeding rice. We’ll see what happens, but we expect a good outcome when we harvest. Then we’ll share the news, letting the knowledge transfer that took place between me and Vicente continue to spread.

That’s also the goal of my music video. Farmers can share what we know in countless ways, from conversations with neighbors to forums at trade shows. I wanted to do my part in a powerful medium of communication that I don’t think farmers have ever used before.

It takes courage: the decision to start farming in the first place, the desire to try new technologies and approaches, and the willingness to teach others.

When I accept the GFN Kleckner Global Farm Leader Award in Des Moines in conjunction with the World Food Prize , I’ll gain a little more of the courage that I’ll need to push forward as a farmer, innovator, and communicator—with a goal to create a world where society places more importance on agriculture by incorporating entertainment elements like my music videos into farming.

Shuichi Tokumoto produces rice, azuki beans and buckwheat in Japan. Recently introduced to no-till agriculture and biotechnology as sustainable agriculture practices, he is focused on sharing what he has learned with an emphasis on environmentally friendly agriculture. Shuichi is a member of the Global Farmer Network and has been recognized as the recipient of the 2024 GFN Kleckner Global Farm Leader Award. www.globalfarmernetwork.org

Connecting Japan’s Farmers to the World In Support of Sustainable Agriculture

Sun, 18 Jun 2023 12:00:00 GMT

By Shuichi Tokumoto: Tottori, Japan

I want to be the most influential farmer in the world.

The first step is for me to become the most influential farmer in my native Japan.

As farmers, we are professional businessmen and women who produce the food our families, communities, and the world needs. To support my work as a Japanese farmer, I recently founded the Japan Biotech Crop Network . Our mission is to build a stable and sustainable supply of food and feed for our country while reducing the burden that agriculture puts on the environment. We will accomplish this through honest conversations about sound science and smart technology, leading to policy recommendations that serve the long-term interests of farmers and consumers.

Unlike many farmers, I haven’t spent my life in food production. I’ve worked as a firefighter, a singer , and an information-technology professional. In 2008, I was on the board of an IT venture company in Tokyo when the bankruptcy of the Lehman Brothers sent shock waves through the global economy.

That experience convinced me to reorganize my life. Rather than immersing myself in the intangibles of the IT industry, I wanted to create tangible value from scratch with my own business. Around the same time, I had a child—and began to think hard about the food that we eat and the future in which my children will live.

So, I became a farmer, and today I grow paddy rice, feed corn, soybeans, buckwheat, and more near the city of Tottori. (Here’s a video of me on my farm last month, as a tractor forms a hard-packed retaining wall to conserve water.)

As I moved into agriculture, I noticed that populist politics and scientific illiteracy affect farming in profound ways—and make it harder for Japan to grow the food that it needs. Too many policies are the result of what sounds popular to the non-farming public rather than what makes sense for the good of the nation, and many of these blunders depend on low levels of education and scientific knowledge.

Because of this, Japan has resisted technological developments that have improved food security in many other nations. I saw this firsthand at a meeting of international farmers in Argentina, sponsored earlier this year by the Global Farmer Network . As we visited hugely successful farms, I saw how GMOs have helped my fellow farmers fight pests, weeds, and disease to grow more food. I also saw how GMOs in conjunction with no-till methods and cover crops protected the environment and contributed to sustainability.

On returning home, I began to question Japan’s longstanding resistance to GMOs like never before.

If we want our agricultural system to provide high-quality food at reasonable prices in a way that respects the environment, we need to reject non-science-based ideology and embrace safe technology. Time and again, the studies of our own government have shown that GMOs present no risk to human health or biodiversity.

I’m hopeful that the Japanese public will become more accepting of GMOs, but I’m especially heartened by the rise of gene-edited crops, sometimes called new genomic techniques, or NGTs. This different approach to biotechnology presents Japan with a breakthrough opportunity to welcome the latest advances in crop science.

A few gene-edited products are already on the market. With time, people will get used to them and recognize that they can become a part of a healthy and nutritious diet and will specifically request them.

Demographic factors also may play a role. The population of Japan is aging . This is driven partly by the fact that people are living longer, which is good, but mostly by declining birthrates, which is bad. This has enormous implications for the economics of agriculture, as some farmers quit the business and fewer children want to take up the occupations of their ancestors.

The future of farming in Japan therefore is large-scale and liquid, as smaller numbers of farmers will take on the obligation of overseeing more agriculture land. This new generation will push for productivity by taking advantage of safe technologies while also committing to sustainable practices.

They’re going to need my new group, the JBCN .

We’re ready to improve agriculture in Japan—and if we can lead the way here, we can lead the whole world.

Shuichi Tokumoto is a first-generation farmer producing rice, beans and corn on 100 Ha in Japan. Shuichi is the founder of the Japan Biotech Crop Network ( www.japan-biotech-crop-network.com ) and a member of the Global Farmer Network. This column originates at www.globalfarmernetwork.org

Which Country Imports the Most U.S. Wheat?

Wed, 05 Apr 2023 13:34:09 GMT

Did you know about half of all wheat grown in the U.S. is exported? USDA’s Economic Research Service (ERS) estimates 21 million metric tons of wheat was shipped out of U.S. ports in 2022, totaling $8.49 billion.

The Mississippi and Columbia-Snake rivers help push grain by barge to export facilities in the Gulf and Pacific Northwest. However, the region between these two rivers instead relies heavily on rail to move grain, with USDA finding 50% to 60% of all wheat exports from 2014 to 2019 were moved to ports by rail.

The biggest export markets for U.S. wheat in 2022, particularly hard red winter, was Mexico followed by the Philippines and Japan. However, non-tariff trade barriers could push The Philippines and Japan out of the top three, according to the U.S Trade Representative’s (USTR) 2023 Foreign Trade Barriers report .

USTR is required to annually review the “operation and effectiveness” of U.S. trade agreement to ensure compliance. Here’s what the 2023 report unearthed from the biggest importers of U.S. wheat.

Where Does Japan Stand?

Japan imported $912.38 million worth of U.S. wheat in 2022, and this week, Japan sought 78,732 million tons of milling wheat in its weekly tender.

But USTR says the U.S. regularly monitors Japan’s wheat trade for its potential to distort trade as a result of its system.

So, what does Japan’s trade landscape look like?

Japan requires wheat to be imported through its Grain Trade and Operations Division to secure the lowest tariff rate. It then resells the wheat to Japanese flour millers at prices substantially above import prices through a markup, according to USDA.

USTR’s findings come as the U.S. and Japan finalized trade deals in ethanol and critical minerals last week.

“One week, two deals. Our two countries are making a better future,” said Rahm Emanuel, U.S. ambassador to Japan.

The trade landscape in The Philippines looks much different, however.

Imports in The Philippines

The Philippine Department of Agriculture (DA) uses the Sanitary-Phytosanitary Import Clearance (SPSIC) system to restrict certain ag imports during peak harvest times. Through this system, the DA requires importers to obtain an import permit, which is only active for 15 to 90 days.

According to USTR, the SPSIC permit for wheat is bound by a 20-day expiration and can put up a trade wall.

“The length of validity and issuance appear to be based on the political sensitivity of the products rather than on sanitary… risk,” USTR said in the report.

So, what does the USTR intend to do about these non-tariff trade barriers?

Keeping an Eye on Trade Barriers

Understanding the full scope of non-tariff trade barriers in countries such as Japan and The Philippines is difficult because there’s no way to quantify the additional costs of the restrictions, according to USTR.

However, USTR says it intends to address each country about the wheat trade constraints.

“The United States continues to urge Japan to remove a broad range of barriers to U.S. exports, including barriers at the border as well as other barriers to entering and expanding the presence of U.S. products and services in the Japanese market,” USTR said in the report.

This could be carried out through enforcement of the U. S.–Japan Trade Agreement (USJTA), which allows more than 90% of U.S. ag exports to Japan to be duty free or receive preferential tariff access.

The U.S. and The Philippines will likely sort their wheat trade differences through the Trade and Investment Framework Agreement (TIFA) that was signed into law in 1989.

“This Agreement [TIFA] is the primary mechanism for discussions of trade and investment issues between the United States and the Philippines,” USTR said in the report.

U.S. Could Capture Up to 100% of Japan's Ethanol Market

Mon, 03 Apr 2023 16:34:36 GMT

Japan on Friday announced a new biofuels policy. It could allow the U.S. to capture up to 100% of Japan’s on-road ethanol market, U.S. Trade Representative (USTR) Katherine Tai said Friday.

“The new biofuels policy Japan announced is the result of close collaboration between our two countries and it will further allow U.S. producers to meet Japan’s demand for more diverse energy sources,” Tai said in a news release .

According to the new biofuels policy under the Sophisticated Methods of Energy Supply Structure Act, exports of U.S. ethanol could increase by over 80 million gallons annually, representing an additional $150-200 million in exports each year, Tai said.

Japanese regulators revised the U.S. corn ethanol carbon intensity score that allows U.S. ethanol to fully access the entire bioethanol market — up from 66% access in 2021 based on continued improvement in reduction of carbon emission by the U.S. ethanol industry.

The news comes as Japan and the U.S. reached a critical minerals agreement.

“One week, two deals. Our two countries are making a better future,” said Rahm Emanuel, U.S. ambassador to Japan.

Japan Gives Final Approval for Beef Trade Provisions

Mon, 28 Nov 2022 22:35:41 GMT

Japan’s parliament gave final approval to a deal amending a beef safeguard mechanism under the U.S./Japan trade agreement, which was signed by U.S. Trade Representative (USTR) Katherine Tai last week.

The change will reduce the probability that U.S. beef could be hit with higher Japanese tariffs, according to the Office of the USTR.

The updated safeguard “will ensure our farmers and ranchers continue to have access to one of the world’s most dynamic markets,” said Tai. “The protocol represents a foundational pillar of our bilateral trade relationship — and I am grateful to our producers and stakeholders who helped make it possible.”

Japan was the second largest U.S. beef market in 2021, totaling $2.4 billion.

More on beef exports :

U.S. Beef and Pork Export Values Near $150 Million to Colombia
Mission to Market: Expanding Opportunities of U.S. Exports to the UK

WTO Says the U.S. Passed Inflation Reduction Act Could Lead to a "Subsidy War"

Tue, 08 Nov 2022 22:54:00 GMT

The European Union called on the U.S. to amend new green legislation given what it called the law’s discriminatory subsidies, warning of potential retaliation. The head of the WTO called for talks to avoid a “subsidy war.”

Provisions in the recently enacted Inflation Reduction Act included tax credits for electricity from certain renewable resources, sustainable aviation, production of hydrogen, clean vehicles, advanced manufacturing production, and clean fuel production.

Japan joined the EU in calling planned U.S. aid for local electric-vehicle manufacturers “discriminatory” and demanded equal treatment for the nation’s car makers.

The First Chess Move

Japanese automakers may hesitate to invest in the electrification of vehicles in the world’s largest economy if the U.S. offers “discriminatory incentives” to local manufacturers, Japan’s government said in a statement dated Friday.

“This could cause negative impacts on the expansion of investment and employment in the U.S.,” it said in the statement.

Industry Responds

Car giants such as Ford and Toyota say the government should loosen the terms of the climate and tax law to allow manufacturers to source EV components from more places.

The EU also submitted a document to the U.S. late on Friday after officials met in a bid to head off a potential trade war. EU officials had said that the bloc wants to resolve the dispute in an amicable manner, but that Europe should use all tools available to address what it calls unfair subsidies, including by bringing a case to the WTO.

Poor Countries Need $2 Trillion A Year

The news comes as a new report presented in Egypt at the COP27 on Tuesday finds poor countries need $2 trillion a year to help them cut their greenhouse-gas emissions and cope with the effects of climate change.

Around half of that amount would have to come through external financing, mostly from the private sector, it said, and it urged rich countries to ramp up the grants and loans they provide.

More on climate:

How USDA’s $2.8 Billion Climate-Smart Investment Might Impact Your Operation
Seeding The Sky: Can Scientists Manipulate The Weather To Benefit Agriculture?
New Data Shows Ag’s Climate Footprint is Shrinking

Japan's Growing Demand for Quality U.S. Beef is Officially Safeguarded

Fri, 03 Jun 2022 20:15:32 GMT

Japan is the United States’ largest export market for beef, according to the U.S. Meat Export Federation, with the country raking in 320,737 metric tons in 2021, up 5% from 2020.

To keep this upward trajectory going, a new three-trigger safeguard on beef under the U.S.-Japan Trade Agreement was signed into action on Friday to decrease the threat of beef trade interruptions.

According to the Office of the USTR, the safeguard will allow U.S. exporters to meet Japan’s growing demand for high-quality beef while minimizing the odds that Japan will increase tariffs.

“America’s farmers and ranchers have beef products that can compete anywhere in the globe,” said USDA Secretary Tom Vilsack. “This is a positive development for America’s farmers and ranchers. It allows for greater market-based growth in U.S. beef exports to Japan and reduces the probability of higher Japanese tariffs being imposed on U.S. goods.”

In following with the new agreement, the three triggers will enforce:
1. Japanese imports of U.S. beef at a level higher than previously established under the original agreement.
2. Japanese imports of U.S. beef be more than the volume of safeguarded beef imports agreed on in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
3. Imports of U.S. beef to Japan that exceed the total amount of beef imported from the U.S. in the previous year.

Kent Bacus, NCBA’s senior director of international trade and market access says the agreement “underscores the importance of a mutually beneficial relationship” between American cattle producers and Japanese consumers.

“We are hopeful that the improved safeguard will provide greater certainty for all segments of the supply chain,” he says.

U.S. beef exports in 2021 were four times higher than Japanese beef exports, coming in at over $10 billion. Japan made up $2.3 billion of the $10 billion in U.S. beef export sales in 2021.

More on ag trade:

U.S. and Japan Agree To Increase Beef Safeguard Trigger Level

What Biden’s New Economic Framework Means for Ag Trade

John Phipps: The Truth Behind the Numbers in Calculating Agriculture’s Trade Balance

Pacific Nations Agree to Save TPP Trade Pact

Thu, 19 Nov 2020 01:35:28 GMT

(Bloomberg) -- The 11 remaining members of a Pacific trade pact abandoned by U.S. President Donald Trump have reached a deal on a revised agreement, with the nations to work toward signing the deal by early March, according to Singapore’s government.

Senior officials resolved outstanding issues, finalized the list of suspended provisions and completed the legal verification of the agreement, concluding negotiations on what has been renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, Singapore’s trade ministry said Tuesday in a statement.

The deal was reached after two days of talks in Tokyo, and came just hours after Trump imposed tariffs on imported solar panels and washing machines -- his first major move to level what he says is a global playing field tilted against U.S. companies. The whole agreement looked like it might collapse after contentious negotiations in November, when Canada’s participation was thrown into doubt.

Japan’s Economy Minister Toshimitsu Motegi said Canada has agreed to work toward approving the deal, and he believed they would follow through on that.

“Today, Canada and the 10 other remaining members of the Trans-Pacific Partnership concluded discussions in Tokyo, Japan, on a new Comprehensive and Progressive Agreement for Trans-Pacific Partnership,” Joe Pickerill, director of communications for Canadian Trade Minister Francois-Philippe Champagne, said Tuesday in an email.

The agreement comes at a pivotal time for Canada, the second-largest economy in the pact after Trump quit. The country is in the midst of talks to update the North American Free Trade Agreement, the trilateral accord with the U.S. and Mexico that Trump is also threatening to quit. Part of the Canadian response to U.S. Nafta threats has been to push to expand trade ties elsewhere, including Asia.

The original Trans Pacific Partnership, which would have covered 40 percent of the global economy, was seen as a guarantee of U.S. involvement in Asia and a counterweight to Chinese clout -- an idea thrown into disarray when Trump withdrew in one of his first acts as president. Japan has led a scramble to keep the deal alive, with the hope of enticing the U.S. to return at a later date.

“The CPTPP will enhance trade among countries in the Asia-Pacific, resulting in more seamless flows of goods, services, and investment regionally,” Singaporean Trade Minister Lim Hng Kiang was quoted as saying.

Of the four remaining issues left after the talks in Vietnam in November, the sections of the deal Brunei and Malaysia had a problem with will be frozen, Motegi said. Matters involving Vietnam’s labor rights and Canada’s cultural goods will be dealt with in side letters, which each country agreed to sign separately to the CPTPP deal, he said.

Pickerill said Canada achieved “a significant outcome on culture and an improved arrangement on autos with Japan along with the suspension of many IP provisions of interest to Canadian stakeholders,” referring to intellectual property provisions.

The following countries make up the agreement: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

©2018 Bloomberg L.P.

USMEF's Halstrom Talks Export Results & Opportunities at Pork Forum

Tue, 17 Nov 2020 05:21:22 GMT

U.S. Meat Export Federation (USMEF) President and CEO Dan Halstrom will be addressing participants at the National Pork Industry Forum on Thursday, March 7. Halstrom offers a preview of his presentation in the audio report below.

In his address to the Pork Act Delegate Session, Halstrom plans to discuss new opportunities for U.S. pork in established markets such as South Korea, Japan and Colombia, as well as developments in emerging markets in Latin America, Southeast Asia and Africa.

He will also highlight USMEF’s efforts to preserve market share and capitalize on new opportunities in Mexico, despite facing a 20 percent retaliatory duty.

Record Pork Exports to South America Driven by Colombia, Peru

Canada Eyes Becoming the No. 1 Chilled Pork Supplier to Japan

Rice Excluded From Trade Accord U.S., Japan Aim to Sign Soon

Sun, 15 Nov 2020 20:59:35 GMT

(Bloomberg) -- U.S. rice growers won’t get increased sales under the current terms of a trade deal agreed by President Donald Trump and Japanese Prime Minister Shinzo Abe, people familiar with the accord said.

While there are still details to be finalized, the people said there won’t be any expansion of Japan’s quotas for U.S.-grown rice. U.S. producers hope the issue will be dealt with in the second phase of negotiations between the two countries, according to one of the people.

Still, it’s unclear whether or when Trump and Abe will continue talks given that any trade deal in Japan has to be approved by the parliament and the Trump administration is running out of time before the 2020 presidential election.

Japan is a key export market for U.S. rice farmers, who have been under pressure after the Asian nation signed trade agreements with other countries including the revised 11-member Trans-Pacific Partnership. U.S. Agriculture Secretary Sonny Perdue had suggested the White House may make a concession on rice, which is “sort of a cultural issue in Japan,” local media have reported.

“Although we are glad to see the bilateral agreement between the U.S. and Japan, we were disappointed to see that U.S. rice was not included,” said Stuart Hoetger, a rice trader and manager of Pinnacle Rice Coop in Chico, California. A spokesperson for the U.S. Trade Representative didn’t respond to a request for comment.

Japan is required to import 682,000 tons of rice under World Trade Organization commitments, with the U.S. typically making up about half of that amount, according to USA Rice. Since Japan signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, there’s been more competition from Australian producers, the industry group said.

Chris Crutchfield, president of rice miller and marketer American Commodity Company LLC in Williams, California, said the U.S. industry wants not only more volume but better quality access to the Japanese market. Much of the U.S. rice going to Japan is auctioned by the government and used to make noodles, beer or sake, with only a small amount sold as table rice. American rice should be allowed to be auctioned directly to private buyers and marked as being grown in the U.S.

“We still believe the administration is going to get us something better than we currently have,” Crutchfield said by telephone.

©2019 Bloomberg L.P.

Progress Reported on Several Trade Fronts

Sun, 15 Nov 2020 20:59:06 GMT

There is trade talk movement on several fronts right now:

China

President Trump is reiterating that progress is being made toward a comprehensive trade deal with China. He is emphasizing that it will help farmers and ranchers. He talked about the negotiations during a roundtable discussion on the economy in Burnsville, Minnesota this week.

President Trump saying, “The farmers have not been treated well for fifteen years. You can go back and it’s just a graph downward. Well, we’re changing that. You wait and see what’s gonna happen, so we’ll see if it all works out with China, but we’re doing well in the negotiation. It’s very comprehensive in the sense that it’s a very complete negotiation. We’re talking about theft of intellectual property. We’re talking about so many other things, but we’re also talking about the farmers and the ranchers and people that have not been treated fairly by, really, the world.”

Reuters is reporting negotiations could include lifting a ban on U.S. poultry and buying more pork. However, it’s not likely to ease restrictions on the growth promotant ractopamine.

Iowa State agriculture economists say they expect China to import about $4.6 million tons of pork in 2020.

Japan

Negotiators for both the U.S. and Japan say they conducted talks this week in line with the agreement made between Japan’s Prime Minister and President Trump in September.

The week’s talks focused mostly on goods. The discussions between U.S. Trade Representative Robert Lighthizer and Japan’s Economy Minister were labeled as “good and frank”.

National Economic Council Director Larry Kudlow was asked about the talks with the Japanese. Kudlow was asked by a reporter about whether the U.S. was looking at separate deals with the Japanese by breaking out agriculture as a temporary fix. Kudlow answered, “Ambassador Lighthizer is walking through that. They’re in the talks. The talks are thick and hot and heavy, and I think that’s terrific. Japan’s a great ally of ours. I don’t want to comment on outcomes or any details. I just think it’s always healthy when we’re talking.”

Japan’s Economic Minister said the discussions were focused on common ground to move the talks forward. Both sides are pledging to accelerate talks between the two nations.

European Union

Negotiators with the European Union have gotten approval to hold trade talks with the United States. E.U. Trade Chief Cecilia Malmström said this week she wants to finalize negotiations before the end of this European Commission, which is in office through October.

Two big hurdles stand in the way: a demand that any negotiation results in the U.S. dropping tariffs imposed on steel and aluminum last year, and that the talks include agriculture. The E.U. is adamant agriculture will not be part of the discussion. U.S. officials say it should.

President Trump also touched on that during his economic roundtable in Minnesota. “If you look at the European Union with the barriers they have to agricultural products and cars and so many other things, but the agricultural products, they barely take our agriculture products and yet they can sell Mercedes Benz and they can sell anything they want in our country, including their farm products, and it’s not fair,” said the President.

Republican Senator Chuck Grassley of Iowa said this week it’s likely any deal is rejected by Congress if it doesn’t include agriculture.