Resumption of North American Beef Exports to Japan And Korea

Australian beef suppliers will remain competitive in the global beef industry following the reopening of Japan's beef market to imports from the United States and Canada, Deputy Prime Minister and Trade Minister Mark Vaile said today.

Japan recently announced that imports of US and Canadian beef will be allowed to resume, subject to conditions.

The decision follows the exclusion of North American beef from the Japanese market when a case of BSE was discovered in the US in 2003.

"Australian beef suppliers rapidly responded to the gap in the Japanese market with safe, high quality Australian beef," Mr Vaile said.

"Japanese consumers have responded enthusiastically to Australian beef, which is likely to maintain a strong market share. "

"The reopening of the Japanese beef market is good for the global beef industry and brings a return to stability in the Japanese market."

According to Meat and Livestock Australia, the immediate impact on Australian producers' market share in Japan will be limited as the resumption of US and Canadian beef imports to Japan are subject to safety requirements which will delay supply into the market.

Japan's beef safeguard measure, the "snapback" tariff, will not come into effect until the end of the Japanese fiscal year in March 2006.

"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. The Australian Government will continue to monitor the return of North American beef to Japan closely and work together with industry in Australia and Japanese consumers to lobby the Japanese Government to remove the snapback tariff, or at least to make amendments.

"Stability of supply into the Japanese market would be an issue Australia would be happy to canvass in any future FTA between the two countries" Mr Vaile said.

A decision by the Republic of Korea to resume US beef imports is likely to follow in 2006.

"More work will need to be done in that market before beef starts to flow in from the US." Mr Vaile said.

Korea is Australia's third largest beef market, with imports rising by 48 per cent to $A524 million in 2004-05.

Contacts: Carissa Buckland 02 6277 7420