New Zealand farmers hope Japan will cut beef tariffs through TPP

01/11/2013    34

The chairman of the industry group representing New Zealand's beef and lamb farmers said Wednesday he hopes Japan will cut its tariffs on imported beef under a Trans-Pacific Partnership free trade accord.

Beef + Lamb New Zealand Chairman Mike Petersen told a press conference in Tokyo his group understands the unease in Japan, particularly in its heavily protected agricultural sector, over the TPP, in which Japan, New Zealand and 10 other countries are participating.

Petersen added, however, that the success of the TPP would grow trade between the countries, ultimately benefitting both.

If tariffs on beef are cut, the drop in the price of New Zealand beef in Japan is expected to lead to an increase in sales.

According to Petersen, New Zealand paid NZ$93 million (around 7.5 billion yen) in tariffs on its exports of beef and processed products to Japan last year. "This is a big cost to doing business," he said.

"We are looking to see how through TPP we can get some tariff relief and at the same time grow our business relationships and partnerships between Japan and New Zealand," Petersen said.

The Japanese government faces strong domestic pressure to protect producers of beef and of the other key agricultural products of rice, wheat, pork, dairy products and sugar. Japan has sought to maintain tariffs on these products throughout its participation in TPP negotiations.

Source: Kyodo