Joint Media Release

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

Confirmation by Japan that its tariff on Australia's chilled beef exports will increase from 38.5 to 50 per cent between 1 August and 31 March was extremely disappointing, Trade Minister Mark Vaile and Agriculture Minister Warren Truss agreed today.

"The Government has conveyed its opposition to Japan's beef snapback measure at the highest levels," Mr Vaile said.

Mr Vaile, Mr Truss and the Minister for Foreign Affairs Alexander Downer have all in the past week written to their Japanese counterparts seeking a review of the tariff increase.

"Japan's decision to increase tariffs because of rising imports is outside the spirit of the WTO Agreement, as the increase in imports is due to a recovery in the market following a loss of consumer confidence owing to BSE," Mr Vaile said.

Trade statistics issued today by Japan's Ministry of Finance show Japanese beef imports in the June quarter rose by more than 17 per cent over the corresponding quarter last year and triggered the tariff increase. The increase, however, will not apply to imports of frozen beef which did not exceed the growth trigger.

"The tariff increase not only disadvantages Australian beef producers and other exporting nations, it also hurts Japanese consumers and food industry groups, through higher beef prices in Japan," Mr Truss said.

"Japanese food services industries and consumer groups have publicised their opposition to the tariff increase and other beef exporters such as the United States and New Zealand have also lobbied the Japanese Government against it."

In 2002, Australian beef exports were worth $1.2 billion. Before BSE, the value of exports had reached $1.7 billion.