US-Japan Trade Agreement Signed
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
- Iowa exported $135 million of beef to Japan in 2018.
- Japan is the largest export market for Iowa beef producers.
- U.S. producers sold $2 billion of beef to Japan in 2018, one-fourth of total U.S. beef exports.
- The U.S. exported 330,217 metric tons of beef to Japan in 2018.
- U.S. beef sales to Japan could increase by 7-10 percent ($200 million a year).
- Iowa exported almost $370 million of pork to Japan in 2018.
- Japan was the largest export market by value for Iowa pork producers in 2018.
- U.S. producers sold $1.6 billion of pork to Japan in 2018.
- The U.S. exported 394,300 metric tons of pork to Japan in 2018.
- Iowa exported $491 million of corn to Japan in 2018.
- Japan was the second largest export market (behind Mexico) for Iowa corn growers in 2018.
- Japan purchased 11.5 million metric tons of corn from the U.S. in 2018.
- Japan purchased $2 billion of corn from the U.S. in 2018.
- Iowa exported $122 million of soybeans to Japan in 2018.
- The U.S. exported $947 million of soybeans to Japan in 2018.
Sources: U.S. Meat Export Federation, U.S. Grains Council and Iowa Economic Development Authority.
Iowa Cattlemen Statement on Trade Deal with Japan
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.