Imported pork from Canada, Chile and Mexico will be more competitive in Japan under multilateral trade talks that the US quit in 2017.
Beginning in January 2019, Japanese tariffs on Canadian pork products will be halved to 2.2% vs the current rate of 4.3, before falling to 1.96% on April 1.
Imports of ground seasoned pork from Canada, Mexico have surged and the market share of the US pork products has dropped from 72% to 65.5%.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) — the successor to the Trans-Pacific Partnership deal that was axed by then-newly elected US president Donald Trump – has 11 member countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
So far, six countries have completed ratification. Earlier this year, Japan and Singapore completed the ratification process, while Australia, Canada and New Zealand will be ready by Q4, 2018. The agreement will enter into force in December 30 with tariff reduction for member countries who completed ratification. The second round of tariff reduction is to follow April 1.