030312 US Urges Japan Not to Raise Tariffs on BeefMarch 3, 2003Tokyo - The United States urged Japan not to impose emergency measures to curb beef imports from the U.S. and other countries as expected later this year, Kyodo News reported. In an annual trade policy report submitted to Congress, the Office of the U.S. Trade Representative also called on Japan to further open up its rice market and pressed Japan and the European Union to reduce farm tariffs and subsidies for a successful conclusion of the new round of global trade talks. "The United States is very concerned over indications that Japan will increase tariffs on beef... through imposition of an emergency beef tariff measure," the report said. Japan is the biggest beef export market for the U.S., purchasing more than $ 1.2 billion worth of U.S. beef in 2001. Under a World Trade Organization agreement set out in the Uruguay Round of multilateral trade talks, Japan can automatically increase its beef tariff from 38.5% to 50% if there is an increase of more than 17% in beef imports in a three-month period from a year before. There is a growing possibility of Japan launching the emergency import restriction measure as early as this summer. Emergency import restriction measures allowed under WTO rules are intended to aid domestic producers confronted with import surges, but the current situation in Japan indicates beef imports are merely recovering from severely depressed levels following the September 2001 outbreak of mad cow disease there, the Office of the USTR said. "Imposition of this safeguard will threaten this recovery and harm not only U.S. beef producers but also a full range of Japanese beef consumers, including the food service, grocery and restaurant industries," the office said. "The United States will continue to urge Japan suspend this measure," it said. The report also said the U.S. has expressed ongoing concerns over the U.S. market share of Japan's overall rice imports in recent years.
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