Canada Gains Full Access to Japanese Beef Market

For the first time in two decades, Japan is reopening its doors to Canadian processed beef.

This accomplishment ushers in a new era for Canada and its second-largest market for beef and beef products. It expands market access for Canadian exporters while also benefiting Japanese consumers who will have greater access to Canada’s high-quality beef products.

“This is another big step in our trade relationship with Japan, a trusted partner in the Indo-Pacific,” said MarieClaude Bibeau, Minister of Agriculture and Agri-Food.

The development also removes the last restrictions on Canadian beef that Japan put in place in 2003, after the discovery of a case of bovine spongiform encephalopathy (BSE) in Alberta.

Under the new Indo-Pacific Strategy, the Government committed to seizing economic opportunities for Canada by strengthening its regional partnerships, including with Japan. The Canadian Food Inspection Agency, with the support of Agriculture and Agri-food Canada, has worked tire- lessly over the past few years to assert the highest production standards and quality assurance of Canadian beef in order to reopen full access in key markets, like Japan. Japan is an important market for Canada and the world.

In 2022, the Japanese market for Canadian beef and beef products had an estimated value of $518 million, largely due to Canada’s preferential access under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

“Cattle producers are grateful for the removal of trade barriers for processed beef in Japan, our second-largest export market for beef. Our industry will continue to support global food security by providing some of the most sustainable and highest quality beef in the world,” said Nathan Phinney, President of the Canadian Cattle Association. “We look forward to continuing to work with the Government of Canada to further remove remaining trade barriers and expanding our trade capacity in the Indo-Pacific region.”

“The Canadian Meat Council is very pleased to see this expansion of our beef access to Japan. Our members view this as a critical market for their products, including processed beef and beef patties,” added Christopher White, President and CEO of the Canadian Meat Council. “This agreement will allow our industry to further build on the recent successes they have enjoyed in Japan since the CPTPP was ratified.”

This expanded market access opportunity follows another loosening of restrictions in 2019, when Japan approved imports of Canadian beef from cattle older than 30 months.

Japan is Canada’s thirdlargest market for agriculture and food.

Under CPTPP, Japan’s 38.5% tariff on beef imports (including primary processed products like ground beef patties) will decreased to 23.35% on April 1, 2023, and will go down to 9% by 2033. Tariffs on further processed beef products will be reduced even more and in some cases – eliminated altogether. This change provides Canadian exporters with a clear tariff advantage over our key competitors.

The Federal and Provincial Government have announced $221 million for strategic agricultural initiatives in Manitoba under the new the Sustainable Canadian Agricultural Partnership (Sustainable CAP) with an agreement reached in early April.

The Sustainable CAP is a five-year, $3.5-billion investment by the federal, provincial and territorial governments that supports Canada’s agri-food and agriproducts sectors. This includes $1 billion in federal programs and activities and a $2.5 billion commitment that is cost-shared 60% federally and 40 % provincially/territorially for programs that are designed and delivered by provinces and territories.

The Manitoba government has launched a suite of programs under the Sustainable CAP framework that will help the sector reach its full potential by expanding business opportunities, investing in sustainable practices, and strengthening resiliency of the entire food chain. These programs were developed through significant consultation with industry partners, who highlighted a number of priority areas, including research, innovation and market development, emergency preparedness and technology advancement.

For example, the new Resilient Agricultural Landscape Program has been developed based on feedback from the industry, and supports ecological goods and services by funding on-farm projects that remove carbon (or carbon dioxide) from the atmosphere to reduce greenhouse gas emissions. Eligible applicants include community pastures, agricultural Crown land forage lease-holders, First Nations and Métis communities and farmers outside of watershed district boundaries.

Canadian producers also have access to an enhanced suite of business risk management programs to help them manage significant risks that threaten the viability of their farms and are beyond their capacity to manage.

The Sustainable CAP comes into effect April 1, and replaces the Canadian Agricultural Partnership.