The Japanese Government is said to be taking its first steps towards entering a free trade deal which could provide significant benefits to Australia’s troubled cattle industry.
The potential free trade agreement could lead to Japan dropping its beef tariffs which represent almost 40 percent as reported by the Courier Mail.
Negotiations to drop beef tariffs are said to be a result of nuclear contamination from the Japanese Fukashima disaster which led to a “loss of key genetics” in Japanese herds.
“The potential benefit to Queensland’s beef sector, of any reduction or removal of the tariff on beef to Japan, could be in the order of hundreds of millions of dollars,” a briefing statement to Agriculture Minister John Veigh read.
Queensland produces some of the worlds’ finest Wagyu beef with significant stock to supply the Japanese market, and a move to drop the tariffs will undoubtedly benefit Australia's drought-ridden cattle industry.
The agreement however will not extend to the commodities of rice, sugar or milk powder which will retain its tariffs of 778 percent, 328 percent and 218 percent respectively.