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JAPAN/US REACH BEEF TRADE AGREEMENT

Largest market for US beef to re-open soon

U.S. and Japanese officials in Tokyo recently reached a framework agreement permitting the resumption of beef trade between the two countries following a ten-month interruption. Trade between the two countries will resume following completion of regulatory processes in both countries.

A special marketing program will be developed for Japan under which USDA's Agricultural Marketing Service will certify exported products meet the terms of the agreement. The United States now will be permitted to sell beef and variety meats to Japanese importers from animals below 21 months of age. Animal age will be determined by a combination of production records and physiological means (grading system). This marketing program will be evaluated by the countries in July 2005 and modified as appropriate.

Japan was the largest market for U.S. beef and products with sales in 2003 before the ban was imposed exceeding $1.7 billion. Exports in total account for well over 10% of the total value of U.S. beef output. U.S. sales to Japan were suspended following the discovery of the one case of BSE from an imported cow on December 23, 2003 in Washington State.

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