TPP tariff data boosts meat traders market potential

The information has been released now the agreement’s text has been published by the 12 signatory countries: the US, Japan, Canada, Australia, New Zealand, Mexico, Vietnam, Malaysia, Chile, Brunei, Singapore and Peru.

The ultimate aim of the TPP is to make most of these trades’ duty free. Also, in many cases, duties will disappear once the agreement comes into force – which may happen next year or in 2017. All these details are included in tariff elimination schedules released by the governments. The schedules show what the duties are currently and how much time a government will take to scrap them for intra-TPP zone trades.

Key export market Japan is making significant steps to open up what has traditionally been a relatively protected sector. For instance, in the bovine segment, Japan will phase out relatively high duties for trades between TPP countries.

Duties and tariffs​

Duties of ¥161.50 (US$1.30) per kg on salted, dried, stored-in-brine and smoked bovine meat will be removed over 16 years. Import duties on bovine tongue of 12.8% will be cut in half once the agreement is implemented, with the remainder being phased out over 11 years. Current 50% duties on bovine cheek and head meat will be cut to 9% over 16 years (with potential to introduce safeguard duties if imports rise fast). Tariffs of 11.9% charged on boned chicken legs will be phased out over 11 years.

There will also be significant liberalisation in the largest TPP market – the US. Here, while duties are often lower than in Japan, there are many significant tariffs that will be phased out for TPP trades. For instance, a 26.4% duty on many bovine carcases and halves will be liberalised, albeit with differing rates for TPP partners, for example five years for New Zealand, 13 years for Australia and 21 years for Peru and Japan.

A 3.4% duty on beef sausages stored in airtight containers will disappear once the TPP is in force; 3.2% on prepared pork, mixed with beef; and 6.4% on prepared or preserved ham including cereals or vegetables.

Vietnam​

As for emerging markets in the TPP bloc, in Vietnam, for instance, a wide range of often very significant tariffs will be phased out. These include 20% duties on TPP trades of beef carcases, which will be phased out over three years; 14% on shoulder ham, which will be scrapped over eight years; and some frozen and chilled horse meat cuts – where 40% duties will be phased out over 13 years.

Meanwhile, the TPP signatories have also released agreements on regulatory models for controlling food additives and certifying and labelling organic products. Furthermore, the text of the TPP agreement on sanitary and phytosanitary measures has been released. It includes a system for TPP countries to assess whether a food health measure in an exporting TPP country matches their own standards. If they do, then reduced importing country controls will be applied on such TPP meat and livestock trades.

• For full details, see http://www.tpp.mfat.govt.nz/text​