Secretary Naig Says U.S.-Japan Trade Deal Creates New Opportunities for Iowa Farmers
DES MOINES, Iowa (Sept. 25, 2019) – Iowa Secretary of Agriculture Mike Naig was in New York City today as President Trump signed a trade deal with Japan’s Prime Minister Abe. Secretary Naig, along with other agricultural leaders, participated in a signing ceremony recognizing the bi-lateral trade agreement.
“Japan is one of Iowa’s most important trading partners,” said Secretary Naig. “Today’s agreement is a win for agriculture and welcome news as our farmers gear up for harvest. By lowering tariffs on agricultural products, Iowa producers can be more competitive in the Japanese market. This deal helps build the momentum we need to ratify USMCA and reach a long-term trade agreement with China. Thank you, President Trump, for getting this trade agreement done.”
Secretary Naig remains focused on expanding markets and trade for Iowa agriculture. He will be joining Iowa Governor Reynolds on a trade mission to Japan in November. Details on the trade mission can be found here.
2018 Export Statistics
Sources: U.S. Meat Export Federation, U.S. Grains Council and Iowa Economic Development Authority.
President Trump and Prime Minister Abe of Japan made another step towards a bilateral trade agreement that is expected to greatly benefit the U.S. cattle industry. The agreement will include significant tariff reductions for U.S. beef imported into Japan.
“This bilateral trade agreement with Japan is significant for two reasons. First, Japan is our number one export market by value, and the Japanese are hungry for U.S. beef,” says Matt Deppe, CEO of the Iowa Cattlemen’s Association. “Second, a positive advancement on the trade front is good news for all of Iowa agriculture. Hopefully, this momentum will carry forward to the ratification of USMCA and trade talks with China.”
International trade adds over $300 to the value of every head of cattle in the state of Iowa, and approximately one-quarter of that value is due to exports to Japan. Currently, U.S. beef faces a 38.5% tariff while competitors from other countries like Australia, New Zealand and Canada have a tariff rate of only 26.6%.
Iowa Cattlemen’s Association, together with NCBA, will continue to lobby for increased export opportunities for U.S. beef.