The risk to New Zealand exporters from this trade development is likely to be none.
While the value of Japan’s beef imports from Denmark is considered small at US$1.1 million, the signal is encouraging to other European Union states that hope to gain the same market access in the near future.
Japan banned the import of beef from the EU in 2001 because of the risk of BSE. In 2013 it resumed trade with France, Ireland, the Netherlands and Poland.
European commissioners Malmstrom, Hogan and Adriukaitis, responsible respectively for trade, agriculture and food safety, agree that "it is good news that Japan continues to approve beef exports from EU member states.
"We look forward to seeing Japan open its market to remaining EU member states in the near future. All commission services, together with the EU delegation to Japan, are working towards opening the Japanese market for EU beef and beef products for all those member states that are interested in exporting".
The impact of opening up Japanese beef market access to more EU countries will likely have minimal impact on other traders with Japan.
Japan is Australia’s single biggest market for grain-fed beef and takes 22% of Australia’s beef exports.
Australia has been gaining market share in Japan from the United States as the benefit of lower tariffs come into effect under the trade agreement the two countries share.
Japan is the top destination for US beef but in 2015 US exports to Japan dropped 19% to almost US$1.3 billion.
In 2015 Japan was NZ's 6th biggest beef market by volume, at 15,889t. That was down 35% on 2014 because of weaker demand and stiffer competition from US and Australian suppliers. On a value basis it was the fifth-largest market with beef exports totalling NZ$146m.
Exports from the EU will struggle to cause too much disruption to other nations. Beef exports of the four member states that gained access to Japan’s beef market in 2013 were valued at US$5.1m in the first half of 2015.
Of Japan’s beef imports in 2015, 58% came from Australia, 33% from the US, 3% from NZ and 2% from both Canada and Mexico. Just 0.23% was supplied by the four member states mentioned.
