Just when you think everything is going good, the train jumps the track! The USMEF (United States Meat Export Federation) and US trade officials had almost convinced the Japanese government to allow beef from cattle older than 20 months but younger than 30 months of age to be imported from the US once again. But now with a more left thinking ruling party (Democratic Party) taking over in Japan, this measure looks to be derailed with the country taking more of a protectionist stance.
Before BSE was discovered in the U.S., 30% of the US beef exports by volume went to Japan, but the Japanese took less than 8% last year. I understand that politics rule trade negations more than supply and demand, but this is ridiculous. Here's a link to an article about the trade situation:
http://www.forbes.com/feeds/reuters/2009/09/01/2009-09-01T173214Z_01_N01392490_RTRIDST_0_BEEF-JAPAN.html
Take a look at one of my earlier posts to find out how I really feel about the whole trade situation.
Nonetheless, who is paying off Japan to keep our beef out of their country? Now, since the BSE scare of 2003, Australia and New Zealand took over the bulk of our beef exports for Japan, but you have to wonder if Brazil has or is in the process of acquiring more quota based on the fact that they can produce a lot of beef for pretty cheap? Just something to think about...
One thing's for sure, I don't see the Obama administration really caring that much about trade, unless it has to deal with human rights issues and so called "fixing" of the trade agreements put into place by the Bush administration. It will be interesting to see for some time to come!
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