Japan Mulling Cutting Tariffs on Australian Beef

Tokyo, May 16 (Jiji Press)--Japan has begun considering cutting its tariff rate for some of Australian beef in the two countries' negotiations on a proposed economic partnership agreement, informed sources have said. Tokyo will propose lowering the rate to about 30 pct from 38.5 pct at present, the sources said. It hopes to keep the tariff rates at the current levels for other agricultural products such as rice and sugar, according to the sources. The two countries will hold formal EPA discussions by summer, the first since June 2012, with the aim of reaching an agreement on the free trade pact, if they come to terms on such issues as when Australia will reduce its 5 pct tariffs on Japanese automobiles to zero in informal discussions, the sources said. Japan and Australia, a major exporter of agricultural products, kicked off their EPA negotiations in 2007. In December 2006, the agricultural, forestry and fisheries committees of both chambers of Japan's Diet, or parliament, passed resolutions demanding that rice, wheat, beef, dairy products and sugar be excluded from the scope of products subject to tariff elimination in the bilateral EPA talks. In Japan, Australian beef is mainly used for hamburgers and other processed foods. The Japanese government believes that impacts on domestic beef farmers would be limited even if the beef tariffs are reduced because competition between the Australian produce and Japanese beef is not fierce, the sources pointed out. Meanwhile, competition has ben intensifying between Australian and U.S. beef in the Japanese market since Tokyo relaxed its import restrictions on the American produce in February. Australia hopes to conclude the EPA negotiations with Japan at an early date to help its beef compete better with U.S. beef. END