U.S. pork producers are losing market share in Japan because international competitors have recently entered into trade agreements with Japan, including the European Union and those countries participating in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (TPP minus the U.S.). According to Iowa State University Economist Dermot Hayes, U.S. pork exports to Japan will grow from $1.6 billion in 2018 to more than $2.2 billion over the next 15 years if the United States quickly gains access on par with international competitors. Hayes reports that U.S. pork shipments to Japan will drop to $349 million if a trade deal on these terms is not quickly reached with Japan.
U.S. pork producers are now at a significant disadvantage in Japan relative to the EU and CPTPP nations, which implemented trade agreements with Japan in 2019. NPPC urges the Trump administration to expeditiously finalize negotiations with Japan to prevent continued U.S. pork market share loss in its top value export market.
- Japan has a population of nearly 127 million people.
- Japan is the third largest economy in the world.
- 2018 agricultural exports to Japan totaled $12.8 billion.
- Japan is the largest value market and second largest volume market for U.S. pork exports.
- Pork exports to Japan support 13,100 U.S. jobs.