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Can you guess which countries send the most beef to the U.S.? Do you know which countries buy the most U.S. beef? Here’s the breakdown.
August 10, 2016
This past week brought a flurry of responses to USDA’s announcement regarding our new trade status with Brazil. Brazil currently ships cooked and canned beef to the U.S. However, the new agreement allows for fresh product to be exported from Brazil for the first time since the country was classified with foot and mouth disease (FMD) by USDA.
Brazil will be operating under the Tariff Rate Quota (TRQ) outside of country-specific trade agreements (e.g. Canada and Mexico). USDA explains the system as follows:
The two-tiered system allows a specified volume of imports per calendar year at a lower rate of duty and assigns a higher tariff rate to volumes above the quota. Two types of U.S. TRQs were established through WTO negotiations:
Country-specific TRQs: created for Australia, Japan, New Zealand, Uruguay and Argentina;
Other Countries TRQ: provides preferential-duty access for other countries that are eligible to ship beef to the United States.
The other-countries annual quota, under which Brazil will be operating, is established at 64.8 million tons – access under that quota is on a first-come, first-served basis for countries that do not have a specific quota agreement with the U.S. Beef imported into the U.S. above that amount is posted with a heavy tariff. The 2015 quota-fill rate stood at 68%. So the actual amount of Brazilian beef that will be imported into the U.S. is unknown, but analysts don’t think it will be burdensome.
Meanwhile, last week’s Industry At A Glance dealt with the overall importance of exports, specifically, the role exports play in terms of managing total per-capita supply within the U.S.
On both sides, it draws attention to the importance of international trade for the U.S. beef industry. To that end, this week’s illustration highlights the industry’s major trade partners – and the economic impact of each country, respectively.
How do you perceive the various influences on international trade? Conversely, what’s your perception of international trade on the current state of the cattle market? Beside any potential introduction of FMD into the U.S. (another topic for another day), what’s your perspective of the economic impacts of trade – on both sides – to the beef industry? Leave your thoughts in the comments section below.
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Nevil Speer serves as an industry consultant and is based in Bowling Green, KY.
Nevil Speer has extensive experience and involvement with the livestock and food industry including various service and consultation projects spanning such issues as market competition, business and economic implications of agroterrorism, animal identification, assessment of price risk and market volatility on the producer segment, and usage of antibiotics in animal agriculture.
Dr. Speer writes about many aspects regarding agriculture and the food industry with regular contribution to BEEF and Feedstuffs. He’s also written several influential industry white papers dealing with issues such as changing business dynamics in the beef complex, producer decision-making, and country-of-origin labeling.
He serves as a member of the Board of Directors for the National Institute for Animal Agriculture.
Dr. Speer holds both a PhD in Animal Science and a Master’s degree in Business Administration.
Contact him at [email protected].
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