Food Business News - September 3, 2019 - 32

WASHINGTON

U.S.-Japan agreement

Pact may put U.S. producers on even playing field with those from C.P.T.P.P. nations

E

ager for good news on the trade
front, U.S. agricultural associations
applauded the announcement that
the United States and Japan have agreed in
principle on a new free trade deal that may
help level the playing field for U.S. producers and exporters in one of their most important markets. President Donald Trump
and Prime Minister Shinzo Abe and their
trade teams announced the agreement on
Aug. 23 during the G-7 summit in Biarritz,
France. The deal was said to include
industrial tariffs and digital trade as well
as agriculture.
Trade negotiators revealed no details
of the agreement in principle. They were
directed by President Trump and Prime
Minister Abe to hammer out remaining issues so the agreement may be signed when
both heads of state are in New York for
the convening of the United Nations 74th
General Assembly. Both President Trump
and Prime Minister Abe are scheduled to
address the General Assembly on Sept. 25.
Agricultural associations presumed
that the agreement will provide for at least
equal treatment for U.S. farm products
compared with what Japan accords to its
partner nations in the Comprehensive
and Progressive Trans-Pacific Partnership
(C.P.T.P.P.). The C.P.T.P.P. is the successor
to the proposed Trans-Pacific Partnership
free trade agreement from which President Trump withdrew on taking office in
2017. The C.P.T.P.P. sans the United States
took effect Dec. 30, 2018, and each member country gives preferred access at lower
tariffs to other members' products.
"Japan is a significant market for
U.S. agriculture exports, making today a
good day for American agriculture," said
Secretary of Agriculture Sonny Perdue. "By
32

Food Business News

removing existing barriers for our products,
we will be able to sell more to the Japanese
markets. At the same time, we will be able to
close gaps to better allow us to compete on a
level playing field with our competitors."
U.S. agricultural exports to Japan in
2018 were valued at $12.9 billion, making
that nation the No. 4 export destination
for U.S. farm products.
U.S. Trade Representative Robert
Lighthizer said Japan was expected to purchase substantial additional amounts of
U.S. corn under the agreement. President
Trump was quoted as saying Japan would
buy "hundreds of millions of dollars
of corn" from the United States. Prime
Minister Abe was more reserved, stating,
"With regard to the potential purchase of
American corn, in Japan we are now experiencing insect pests on some agricultural
products. And there is a need for us to buy
some of the agricultural products."
Regardless of the immediate impact
of the prospective agreement, corn producers welcomed the announcement.
"This is very encouraging news," said
Lynn Crisp, president of the National Corn
Growers Association. "Japan is the second-largest purchaser of U.S. corn and has
been an important, longstanding trading
partner with America's corn farmers. We
hope the next stage of negotiations are
successful in enhancing the rules of trade
and building on this strong relationship."
The National Association of Wheat
Growers and U.S. Wheat Associates also
praised efforts to secure the new trade
agreement with Japan.
"We are very happy that this agreement will end the growing competitive cost
advantage that Canadian and Australian
wheat imports got under the C.P.T.P.P.

agreement," said Doug Goyings, an Ohio
wheat farmer and chairman of U.S. Wheat.
"This is a huge win for those of us
who grow wheat and all U.S. farmers and
ranchers," said Ben Scholz, a Texas wheat
grower and president of NAWG.
When the C.P.T.P.P. was implemented,
Japan's effective tariffs on imported Canadian and Australian wheat began to decline.
U.S. Wheat and NAWG said, locked out of
the agreement, U.S. wheat imports would
have become less and less cost competitive
to the point that Japan's flour millers would
have no other choice other than to buy the
lower cost wheat from the C.P.T.P.P. member
countries. The associations said the new
agreement with Japan should help protect
U.S. exports that represent about 50% of
the Japanese wheat market with average
annual sales of about 3 million tonnes
worth about $700 million per year.
Pork and beef producers also stand to
gain from a U.S.-Japan agreement.
"The U.S. will be better able to compete
with the C.P.T.P.P. nations and the European
Union for valuable market share," said Julie
Anna Potts, president and chief executive
officer of the North American Meat Institute.
Dan Halstrom, president and c.e.o. of
the U.S. Meat Export Federation, said, "This
announcement is tremendous news for U.S.
farmers and ranchers, and for everyone in
the red meat supply chain, because it will
level the playing field for U.S. pork and beef
in the world's most competitive red meat
import market. It is also a very positive development for our customer base in Japan,
which U.S.M.E.F. and our industry partners
have spent decades building." FBN
Jay Sjerven
jsjerven@sosland.com
September 3, 2019

┬ęCIL86 - STOCK.ADOBE.COM

AG GROUPS APPLAUD PROSPECTIVE



Food Business News - September 3, 2019

Table of Contents for the Digital Edition of Food Business News - September 3, 2019

Food Business News - September 3, 2019
MARKET INSIGHT - Sweetener consumption on downtrend
Contents
FROM THE EDITOR - Corporate social responsibility now embraced as strategic priority
Hershey expands snacking portfolio with acquisition and investments
Minute rice maker Ebro Foods purchases Tilda brand from Hain Celestial
Mick Beekhuizen named c.f.o. at Campbell Soup, replacing DiSilvestro
Smucker caught off guard by sales weakness in quarter
Target unveils new flagship food and beverage brand
Longtime Mars executive joins Danone as growth and innovation leader
Impossible Foods picks Apple exec to lead product management
Hormel overcomes broad-based challenges in third quarter
Del Monte Foods closing four United States facilities
KFC testing plant-based fried chicken in United States
Study finds more consumers are using food as medicine
Paulo Basilio returns as c.f.o. at Kraft Heinz, taking over for David Knopf
Chobani announces several leadership changes; McGuinness named president
WASHINGTON - AG GROUPS APPLAUD PROSPECTIVE U.S.-Japan agreement
INGREDIENT TRENDS - Next-gen flavors in focus
Flavor development at Jelly Belly taps into trends
INGREDIENT INNOVATIONS - Picking a PROTEIN PREMIUM PERFORMANCE
ENDURANCE athletes seek steady supply
BEVERAGE BUSINESS NEWS - Making BROWN beautiful in beverages
NEW FOOD INSIDER
Ingredient Market Trends - Spring wheat harvest expands, corn harvest underway
INGREDIENT MARKETS
SUPPLIER INNOVATIONS
CLASSIFIEDS
MARKETPLACE
Ad index
Food business in the news
Food Business News - September 3, 2019 - MARKET INSIGHT - Sweetener consumption on downtrend
Food Business News - September 3, 2019 - 2
Food Business News - September 3, 2019 - 3
Food Business News - September 3, 2019 - MARKET INSIGHT - Sweetener consumption on downtrend
Food Business News - September 3, 2019 - 2
Food Business News - September 3, 2019 - 3
Food Business News - September 3, 2019 - Contents
Food Business News - September 3, 2019 - 5
Food Business News - September 3, 2019 - 6
Food Business News - September 3, 2019 - FROM THE EDITOR - Corporate social responsibility now embraced as strategic priority
Food Business News - September 3, 2019 - Minute rice maker Ebro Foods purchases Tilda brand from Hain Celestial
Food Business News - September 3, 2019 - Mick Beekhuizen named c.f.o. at Campbell Soup, replacing DiSilvestro
Food Business News - September 3, 2019 - Smucker caught off guard by sales weakness in quarter
Food Business News - September 3, 2019 - 11
Food Business News - September 3, 2019 - Target unveils new flagship food and beverage brand
Food Business News - September 3, 2019 - 13
Food Business News - September 3, 2019 - Impossible Foods picks Apple exec to lead product management
Food Business News - September 3, 2019 - 15
Food Business News - September 3, 2019 - Hormel overcomes broad-based challenges in third quarter
Food Business News - September 3, 2019 - 17
Food Business News - September 3, 2019 - 18
Food Business News - September 3, 2019 - Del Monte Foods closing four United States facilities
Food Business News - September 3, 2019 - KFC testing plant-based fried chicken in United States
Food Business News - September 3, 2019 - 21
Food Business News - September 3, 2019 - Study finds more consumers are using food as medicine
Food Business News - September 3, 2019 - 23
Food Business News - September 3, 2019 - 24
Food Business News - September 3, 2019 - 25
Food Business News - September 3, 2019 - 26
Food Business News - September 3, 2019 - Paulo Basilio returns as c.f.o. at Kraft Heinz, taking over for David Knopf
Food Business News - September 3, 2019 - 28
Food Business News - September 3, 2019 - 29
Food Business News - September 3, 2019 - Chobani announces several leadership changes; McGuinness named president
Food Business News - September 3, 2019 - 31
Food Business News - September 3, 2019 - WASHINGTON - AG GROUPS APPLAUD PROSPECTIVE U.S.-Japan agreement
Food Business News - September 3, 2019 - 33
Food Business News - September 3, 2019 - 34
Food Business News - September 3, 2019 - 35
Food Business News - September 3, 2019 - INGREDIENT TRENDS - Next-gen flavors in focus
Food Business News - September 3, 2019 - Flavor development at Jelly Belly taps into trends
Food Business News - September 3, 2019 - 38
Food Business News - September 3, 2019 - 39
Food Business News - September 3, 2019 - 40
Food Business News - September 3, 2019 - 41
Food Business News - September 3, 2019 - 42
Food Business News - September 3, 2019 - 43
Food Business News - September 3, 2019 - INGREDIENT INNOVATIONS - Picking a PROTEIN PREMIUM PERFORMANCE
Food Business News - September 3, 2019 - 45
Food Business News - September 3, 2019 - ENDURANCE athletes seek steady supply
Food Business News - September 3, 2019 - 47
Food Business News - September 3, 2019 - 48
Food Business News - September 3, 2019 - 49
Food Business News - September 3, 2019 - BEVERAGE BUSINESS NEWS - Making BROWN beautiful in beverages
Food Business News - September 3, 2019 - 51
Food Business News - September 3, 2019 - 52
Food Business News - September 3, 2019 - 53
Food Business News - September 3, 2019 - 54
Food Business News - September 3, 2019 - 55
Food Business News - September 3, 2019 - NEW FOOD INSIDER
Food Business News - September 3, 2019 - 57
Food Business News - September 3, 2019 - 58
Food Business News - September 3, 2019 - 59
Food Business News - September 3, 2019 - 60
Food Business News - September 3, 2019 - Ingredient Market Trends - Spring wheat harvest expands, corn harvest underway
Food Business News - September 3, 2019 - INGREDIENT MARKETS
Food Business News - September 3, 2019 - 63
Food Business News - September 3, 2019 - 64
Food Business News - September 3, 2019 - 65
Food Business News - September 3, 2019 - 66
Food Business News - September 3, 2019 - 67
Food Business News - September 3, 2019 - 68
Food Business News - September 3, 2019 - 69
Food Business News - September 3, 2019 - 70
Food Business News - September 3, 2019 - 71
Food Business News - September 3, 2019 - SUPPLIER INNOVATIONS
Food Business News - September 3, 2019 - 73
Food Business News - September 3, 2019 - CLASSIFIEDS
Food Business News - September 3, 2019 - MARKETPLACE
Food Business News - September 3, 2019 - 76
Food Business News - September 3, 2019 - Ad index
Food Business News - September 3, 2019 - Food business in the news
Food Business News - September 3, 2019 - 79
Food Business News - September 3, 2019 - 80
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