U.S. beef and pork exports had their challenges in 2015, but there was good news as well. One of the bright spots was the Korean market. U.S. Meat Export Federation (USMEF) President and CEO Phil Seng credits the Korean Free Trade agreement that was put together four years ago. The U.S. now has a duty advantage over its competitors in that market. U.S beef exports to South Korea were up seven percent and that comes at a time with a limited supply of cattle and a strong U.S. dollar. U.S. beef exports also showed growth in Vietnam and Singapore.
“As we take a look at the world, there is the ups and downs, but for the most part it was positive in 2015, even though the numbers don’t reflect that,” Seng said.
In December, repeal of the nation’s mandatory Country of Origin Labeling (COOL) was signed into law by President Obama. That kept the U.S. from $1.01 billion in tariffs on U.S. goods in retaliation. Seng said repeal of COOL also helped the relationship between the three countries and will help trust longer term. Exports in 2015 to the North American Free Trade Agreement (NAFTA) neighbors were slightly lower, but still show consistency from year to year. Seng was thankful there’s nothing else impeding exports, because these two countries account for about 40 percent of the nation’s beef exports.
In looking at 2016, getting the Trans Pacific Partnership (TPP) trade agreement signed will have a huge impact on U.S. meat exports, especially beef. Seng said reducing tariffs from 38 percent to nine percent in Japan will increase exports. While Japan has an aging population, he said this country has become a major tourist destination in attracting 20 million tourists last year. In one month, that equates to the loss in the Japanese population. Tourism is growing Japan’s restaurant, hotel and food service outlets.
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