The United States reached a trade deal with Japan in late September which includes tariff reductions for U.S. potatoes and other agriculture exports. Details of the tariff concessions were released on Monday, October 7 and are expected to go into effect as early as January 1, 2020, though implementation details have not been released.
Importantly, the tariff reductions secured are aligned with those Japan offered to the U.S.’s competitors: Australia, Canada, New Zealand and other nations in the TPP-11 agreement. Notably upon implementation, the agreement includes the immediate elimination of duties on fresh chipping potatoes and immediately reduces Japan’s tariff on fries to 4.25%, the same tariff level as Canada and New Zealand (Australia has a separate faster reduction schedule.)
- Fresh (HS 0701.90): 4.3% tariff eliminated immediately.
- Frozen (HS 2004.1): 8.5% tariff on frozen fries eliminated by 2021. 9-13.6% tariff on other frozen potatoes eliminated completely by 2023.
- Dehy Flakes, Granules, and Pellets (HS 1105.20): 20% tariff reduced in equal annual installments and eliminated by 2023.
- Processed blended dehy (HS 2005.20): 9-13.6% tariffs reduced in equal installments and eliminated by years 2023, 2025, and 2028, respectively.
For more information on the U.S.-Japan Trade Deal or other market access issues, please contact Amy Burdett, Amy@PotatoesUSA.com.