Joint Media Release

1 August 2003

The Minister for Trade Mark Vaile and Minister for Agriculture Fisheries and Forestry Warren Truss

Beef Tariff Increase A Disappointing Decision

The Australian Government today expressed its disappointment that Japan has raised its tariff on Australia’s chilled beef exports from 38.5 per cent to 50 per cent.

“The Japanese Government has made a regrettable decision,” Trade Minister Mark Vaile and Agriculture Minister Warren Truss said.  “We will continue to press the Japanese Government to review the decision.”

Japan announced the tariff increase on 29 July.  It came into effect today and will remain in place until 31 March, 2004. 

“While the tariff increase is legal under World Trade Organisation rules, which include a clause to protect Japanese producers from a surge in imports, it is outside the intent of the clause,” Mr Vaile said.

“The increase in imports which triggered the tariff increase was not an unexpected surge but a recovery in the market following the outbreak of BSE in Japan in 2001.”

“The tariff increase will not only hurt Australian beef exporters it will hurt Japanese consumers and food industry groups, through higher beef prices,” Mr Truss said.

“We will continue to press Japan to reconsider its legislation in light of these considerations.”

Contacts: Matthew Doman (Trade minister’s office) 02 6277 7420 - Tim Langmead (Mr Truss’s office) on 02 6277 7520