GENERAL AGREEMENT ON TARIFFS AND TRADE

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1 GENERAL AGREEMENT ON TARIFFS AND TRADE RESTRICTED IMC/INV/10 9 June 1980 Arrangement Regarding Bovine Meat INTERNATIONAL MEAT COUNCIL Inventory of Domestic Policies and Trade Measures and Information on Bilateral, Plurilateral or Multilateral Commitments Reply to Parts G and H of the Questionnaire JAPAN 1 The participants have agreed to provide information concerning their domestic policies and trade measures including bilateral and plurilateral commitments on the basis of Parts G and H of the Questionnaire (Rule l6 of the Procedure). The documents containing replies to these parts of the Questionnaire are. circulated under the symbol IMC/INV, they will be partly revised as and when changes are notified. This set of documents will constitute the inventory of all measures affecting trade in bovine meat., including commitments resulting from bilateral, plurilateral and multrilateral negotiations 3 which the Council has instructed the secretariat to draw up and keep up to date, under the provisions of Article III of the Agreement (Note to Article III of the Arrangement and Rule 18 of the Rules of Procedure). For replies to the statistical parts, see LMC/STAT/10.

2 IMC/INV/IO Page 2 PART G Part G.l Information on Domestic Policies and Trade Measures I. Production (a) Factors affecting meat production The important factors are the wholesale price of carcass and the retail prices of calves and feed. (b) Policies and measures of government or other bodies likely to influence production, oliter than nupport or stabilization measures There are various kinds of measures which are being implemented by both the central and local governments to promote the production of beef cattle. Such measures include the i.mproving of breed and measures for management stabilization. (c) Outline of support or stabilization measures (i) In accordance with the provisions of the 'Livestock Products Price Stabilization Law", the Minister of Agriculture, Forestry and Fisheries establishes, at the start of each fiscal year, the Stabilization Prices for the year (the Lower Stabilization Price and the Upper Stabilization Price)s taking into consideration the conditions for the production of beef and its supply-demand situation, and also with a view to securing the reproduction of beef. (ii) The Lower Stabilization Price is set up in such a way as to prevent the wholesale price of beef from falling below this level, while the Upper Stabilization Price is set up with a view to preventing it from rising above that level. (iii)the Livestock Industry Promotion Corporation, a semi-governmental corporation (hereinafter referred to as ''LIPC"), is authorized to be engaged in the buying and selling of beef, as a measure for maintaining the wholesale price of domestic beef within the price range established by the Government. (iv) The Price Stabilization System of Japan is to maintain the wholesale price of domestic beef within the Stabilization Price range through occasional market interventions by the LIPC.

3 IMC/INV/IO Page 3 (v) Stabilization Price in Fiscal 1980 (yen per kilogram) Upper Lower Beef (carcass) Stabilization Stabilization Price Price Wagyu-Steers (Japanese native beef cattle) (Second Grade) 1,763 1,357 Dairy-Steers (Second Grade) 1,1+35 1,105 II. Internal prices and consumption (a - l) Wholesale price at major domestic market (Tokyo) (yen per kilogram) Calendar Wagyu-Steers Dairy-Steers year (Second Grade) (Second Grade) ,^33 1, ,696 1, ,618 1, ,58U l : 819 1,U51 (a - 2) Retail price at major domestic markets (Tokyo) (yen per 100 gram) Calendar year Beef (Second Grade)

4 IMC/INV/IO Page h (b) Factors which condition the evaluation of internal consumption Disposable income per capita 3 retail price of beef 3 retail prices of foods substituting beef. (c) Policies and measures affecting consumption Both the central and local governments are implementing various measures for promoting demand for meat and meat products. One of such measures is the campaign for expansion of consumption. III. Measures at the frontier (a & b) Customs tariff and import measures at tariff line level i such as duties,, variable levies t other special charges ^ quantitative restrictions a etc. See Annex. (c) Export measures at tariff line level 3 such as 9 subsidies 3 etc. None. (d) Description of internal regulations 1. Tariff classification rules Customs Tariff Law 2. Quota allocation Import Trade Management Law 3. Specific sanitary regulations Food Sanitation Law Domestic Animal Infectious Disease Control Law i

5 ANNEX Customs Tariff and Import Measure (l98o) No. Stat. Code No. Description General Rate of Duty Préférentiel GATT Temporary Import measure Live animals of the bovine species (Free) Bovine other than buffaloes : 100 Certified as being those used for ameliorative multiplication by the means stipulated by a Cabinet Order Free (Free) : Weighing not more than 300 kgs. per head: Intended to be brought up to beef cattle: for the quantity (quota) stipulated by a Cabinet Order a on the basis of the quantity of prospective domestic demand in the coming fiscal year (April-March) with deduction of the quantity of prospective domestic production, and also in consideration of international market situation and other relevant conditions Free ^5,000 (yen)/head ; X S fl> ^ M VA a g

6 Ho. Stat. Code No. Description General Rate of Duty Prefer- ] GATT ential Temporary Import measure (cont'd ;919 75,000 (yen)/ (head) 920 Buffaloes Free (Free) Meat and edible offals of the animals falling within heading Nos , 01.02, or 01.0U, fresh, chilled or frozen: 1 Meat and meat offals, of bovine animals 2% Meat 3 fresh or chilled: 111 With bone-in 119! Meat, frozen: With bone-in Meat Offals: 131 Internal organs and tongue 22.5$ 139

7 No. Stat. Code No. Description General Rate of Duty GATT Preferential Temporary Import measure prepared or preserved meat or meat offal: Guts, bladders and stomachs of animals, whole and pieces thereofj simply boiled in water Free (Free) 2 : (1) Dried after simply boiled in water 15% 210 Containing meat or meat offal of bovine animals or pigs (2) 25% Containing meat or meat offal of bovine animals or pigs : Of meat or meat offal of bovine animals: In airtight containers : 221 C Corned beef : 222 Containing vegetables {25%) 222 : (Note) "Mote: 223 Simply boiled in water 22U Hnm, pt^-iliz&d and -nicked in Airti/rht containers, is excluded from.

8 IMC/INV/IO Page 8 PART H Part H. Information on Bilateral or Plurilateral Agreements in the Field of Bovine Animals, Meat and Offals I. Copy of the letter» dated 30 July 19T9, addressed to the United States MTK delegation. Sir» I have the honour to refer to the discussions held within the framework of the Tokyo Round of Negotiations under the auspices of the CONTRACTING PARTIES to the General Agreement on Tariffs and Trade and to confirm, on behalf of the Government of Japan» the offers made by the Delegation of Japan, as indicated in the Annex hereto, which will be implemented in accordance with the relevant laws and regulations in Japan, provided that the Geneva (1979) Protocol will have come into force between the two parties. Accept, Sir, the assurances of my high consideration.

9 IMC/lNV/10 Page 9 ANNEX 1. Beef (1) The two Governments will exert mutual efforts to exploit the demand for high-quality beef with a view to realizing by JFY 1983, within the hotel and general quotas, an increase in import by lu,000 tons on a global basis in accordance with the following schedule: JFY 1980 l+,000 JFY 1981) JFY 1982) 10,OCX) JFY 1983) Total increases 14,000 (to be distributed approximately equally each year) The Japnese Government will endeavour, on its part, for the realization of the said increase in import, to facilitate the import of high-quality beef, based on the definition of high-quality beef and import facilitation measures as agreed on in April (2) In case a demand is created, over the levels mentioned above through the efforts of export dealers for the exploitation and expansion of demand for high-quality beef, the import of high-quality beef over the said levels shall not be hindered. (3) The two Governments will evaluate near the end of JFY 1982 the patterns of importation and demand for high-quality beef as defined above. Based on this evaluation and the prospects for the future demand-supply relationship for beef, the Japanese Government will consult with the United States Government on ways to further expand the importation of high-quality beef in 1984 and thereafter to the mutual benefit of both countries. Further such consultations will be scheduled during the course of Tokyo Round implementation period on a biennial basis. 2. Beef (customs duty) (1) The Government of Japan has no intention to initiate any increase in the customs duty on beef (Statistical Code No , 119, 121, 129, 139), (the rate of 25 per cent is applied presently) under the present price stabilization system of beef. (2) In the event that a situation makes it impossible to maintain the customs duty on beef at the above-mentioned level s the Government of Japan will notify the United States Government of such developments in advance where possible and be prepared to enter into consultations with a view to reaching a mutually acceptable solution, which may include the possibility of appropriate adjustments of the MTN concessions.

10 IMC/IÏÏV/10 Page 10 II. Copy of a letter, dated 20 November addressed to the Deputy Prime Minister and Minister for Trade and Resources of Australia. My dear Minister., I have the honour to refer to the discussions held between the representatives of the Government of Japan and the Government of Australia within the framework of the Tokyo Round of Negotiations under the auspices of the Contracting Parties to the GATT and to record the following statements made by the representative of the Government of Japan during the course of the discussions in regard to the importation of beef into the Japanese market, provided that the Geneva (1979) Protocol will have come into force between the two parties.... : -. il 1. The Japanese Government, based on its current assessment of the supplydemand situation of beef for the years up to JFY estimates Japan's imports in JFY 1982 to be 135 s 000 tons and will endeavour, through the available mechanisms under the relevant laws and regulations in Japan, to bring the actual supply-demand (including imports) in line with this estimate. 2. In case the market condition in Japan warrants further imports over the estimate mentioned in paragraph 1, imports of beef over the said level from external suppliers including Australia will not be hindered. 3. (a) The two Governments will exert mutual efforts to exploit the demand in the Japanese market for high quality beef which will be imported on a global basis with a view to realizing an increase in the imports by 1U,000 tons by JFY 1983.' The Government of Japan is prepared to enter into consultations at expert-level with the Government of Australia at an appropriate time before JFY 1980 with regard to the imports of high quality beef from Australia. The two Governments will assess the possibilities for imports of high quality beef on a full sets basis. (b) The Government of Japan is of the view that demand for beef used for manufacturing will increase substantially up to JFY The two Governments will examine the nature of the Japanese market for such beef and measures to facilitate orderly growth of this product.

11 IMC/INV/10 Page 11 k. The Japanese Government is of the view that Japan's beef imports will increase steadily during the period to the end of JFY In case of unforeseen circumstances it is possible that the actual level of quota may fluctuate to a limited extent. The two Governments therefore will hold Japan/Australia beef consultations in JFY 1980 and thereafter with the aim of ascertaining on an annual basis, inter alia, the relationship between actual imports and the estimates and assessments referred to in paragraphs l s 2 and 3 above. The consultations will be held between senior officials of the two Governments. 5. Should problems arise concerning the relationship between actual imports and the estimates, the two Governments will enter into consultations in pursuit of mutually acceptable and trade facilitating solutions. 6. The Japanese Government states that, taking into account the points set out above and the results of the exchange of views in the consultations mentioned in paragraph h above, the practices to fix the import quota on a global basis twice annually will be maintained. 7. The Japanese Government is of the view that imports of beef will increase in the years after JFY The Government of Japan is prepared to enter into consultations with the Government of Australia by the end of JFY 1982 to examine how Japan's imports of beef will increase in and after JFY 1983 taking fully into account the supply-demand situation and estimates becoming available at that time. 8. A copy of this letter will be sent to the Director-General of the GATT for the information of the Contracting Parties. I avail myself of this opportunity to renew to you the assurances of my highest consideration.

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