The Japan Times reports that “sources close to the matter” have said the U.S. has agreed to increase its low-tariff quota for Japanese beef in bilateral trade negotiations.
Although the specific quota number is not known, Japan will be able to export more beef to the U.S. at a duty rate lower than the 26.4 percent levied on 200 tons per year.
The U.S. levies an import duty of 4.4 cents per kilogram on the first 200 tons of beef each year. In 2018, Japan exported 421 tons of beef worth $31 million to the U.S.
Before the U.S. withdrew from the Trans-Pacific Partnership in 2017, it planned to set a 3,000-ton duty-free quota for Japanese beef, eventually removing the tariffs completely by the next 15 years.
After a bilateral trade deal takes place, Japan will remove import tariffs on U.S. wine in seven years.
The U.S. and Japan plan to finalize a trade agreement when Prime Minister Shinzo Abe and President Donald Trump meet in New York later this month.
