Protect American Beef Act.
The Protect American Beef Act would substantially tighten the U.S. policy framework surrounding Wagyu beef imported from Australia. It would set a high initial tariff of 70% on Australian Wagyu meat, as well as on Wagyu semen and conventional embryos (but not IVF embryos, which would remain prohibited for import to the United States). The bill also seeks to establish a reciprocal trade arrangement with Australia specifically focused on Wagyu beef, aiming to reduce or eliminate tariffs and non-tariff barriers in the other direction. The President would have broad authority to respond to tariff differentials or barriers by adjusting duties or negotiating the reciprocal agreement, with formal guidance from USTR and other agencies. The termination provisions allow the price-raising measures to end if Australia stops imposing tariffs or barriers, or if continuing them is no longer in the U.S. economic or public interest. The findings accompanying the bill describe perceived competitive imbalances in the Wagyu market and cite Australia’s current access under existing trade rules, currency advantage, and market share in the United States.
Key Points
- 1The Act establishes a 70% tariff on imports of Wagyu beef, Wagyu semen, and conventional Wagyu embryos from Australia; IVF embryos remain non-exportable to the United States under the bill.
- 2It creates a mandate to pursue a reciprocal trade agreement with Australia regarding Wagyu beef, aiming to reduce duties or eliminate non-tariff barriers in a manner favorable to U.S. Wagyu producers.
- 3The President may take actions if Australia’s duties or non-tariff barriers are significantly more burdensome than the United States’ own, including negotiating a withdrawal or adjustment agreement or imposing a duty equal to Australia’s rate or its effective non-tariff barrier burden.
- 4Decisions under the act must consider multiple factors, including tariff classifications, product characteristics, end uses, competitive relationships, export levels, distortions to trade, and transparency of Australia’s barrier-setting process; USTR advises the President on the effective rate of non-tariff barriers.
- 5The President may set a lower duty rate if appropriate and may increase duties if Australia further raises its own duties; duties imposed under the act can be terminated if Australia ceases tariffs or non-tariff barriers, or if continued increases are not in the U.S. economic or public interest.