Japan's beef snapback tariff avoided for the moment

The Australian Government today noted confirmation that Japan's safeguard on beef imports - the 'snapback' tariff - would not come into force for the April-June quarter.

The Australian Minister for Trade, Mark Vaile, and Minister for Agriculture, Peter McGauran, said figures released by Japan's Ministry of Finance showed beef imports did not exceed the snapback levels for frozen or chilled beef during the April-June quarter.

"Since 2003, the Australian beef industry has worked hard to meet Japanese requests for more beef following the suspension of beef imports from the US. We have been concerned that responding to Japanese requests may result in an unfair triggering of the snapback and we have consistently made that clear to the Japanese Government," Mr Vaile said.

"There was considerable apprehension that the safeguard levels would be reached following the high volume of imports during April and May. The snapback would raise the tariff on beef from 38.5 per cent to 50 per cent."

The Ministers warned, however, that the good news might be temporary.

"The snapback tariff was avoided on this occasion only through adept management of the supply chain by traders, not by any change in the Japanese policy regime. Japanese importers, together with overseas suppliers, cooperated to time the arrival of product to reduce import volumes in June. This sort of supply chain management, however, is not sustainable," Mr McGauran said.

The Ministers said the Australian Government would continue to work together with industry in Australia and Japanese consumers to lobby the Japanese Government to remove the snapback tariff, or at least amend the automatic trigger to include a discretionary element.

"We believe conditions in the Japanese beef market at the moment are exceptional and any increase in imports does not warrant the imposition of a higher tariff," they said.

Media inquiries:
Mr Vaile: Richard Forbes (02) 6277 7420
Mr McGauran: Gemma Allman 0408 971 708