2018 was definitely a volatile year for US trade policy, and the red meat industry felt the impact as key trading partners imposed retaliatory duties on US products and expanded market access for alternative suppliers. And yet, US beef exports will likely exceed $8 billion for 2018 — easily a new record, propelled by strong global demand. Pork export volume held up relatively well, keeping pace with the previous year’s record, but pork export value was pressured by retaliatory duties in Mexico and China.
Looking ahead to 2019, resolution of the trade dispute over US steel and aluminum tariffs remains an urgent priority, as it prompted Mexico and China’s retaliatory duties on US pork and Canada’s duties on cooked/prepared beef products. (China also imposed retaliatory duties on US pork and beef in response to Section 301 tariffs imposed by the United States.)
USMEF strongly supports the new US-Mexico-Canada Agreement (USMCA) and looks forward to its ratification. But in order for the US meat industry to truly capitalize on the USMCA, relief from these retaliatory duties is absolutely essential.
Another urgent priority for the US meat industry is that the upcoming US-Japan trade agreement negotiations make rapid progress. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will enter into force Dec. 30, 2018, and the Japan-EU Economic Partnership Agreement will likely enter into force in early 2019.
The United States will then be the only major red meat supplier to Japan that is not reaping the benefits of a trade agreement. This will put US beef and pork at a significant disadvantage in Japan — the largest value destination for both products.
US red meat production will be record-large again in 2019, and the industry is therefore well-positioned to meet growing global demand. However, market access must be restored.