[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2393 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 2393
To place a duty on imported Australian Wagyu beef and to establish a
reciprocal trade agreement between the United States and Australia as
it concerns wagyu beef.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 26, 2025
Mr. Stutzman introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To place a duty on imported Australian Wagyu beef and to establish a
reciprocal trade agreement between the United States and Australia as
it concerns wagyu beef.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SEC. 1. SHORT TITLE.
This Act may be cited as the ``Protect American Beef Act.''
SEC. 2. FINDINGS.
Congress finds the following:
(1) Wagyu is a breed of cattle from Japan.
(2) Today over 20 countries around the world raise Wagyu
based upon these foundation animals exported to the United
States from Japan.
(3) The Wagyu industry is growing significantly in the
United States.
(4) The United States is the world's largest consumer of
beef and an estimated 10 percent of the beef produced in the
United States achieves the highest USDA grade of Prime.
(5) The American Wagyu Association is the breed society for
Wagyu in the United States with over 1,800 members who
primarily raise Wagyu for the United States market.
(6) There is a significant growth opportunity in the United
States to meet consumer demand for Wagyu but unfortunately
Australia has an unfair competitive advantage and is a
dangerous threat to Wagyu producers in the United States.
(7) Based on the United States trade agreement with
Australia, Australia is able to export their beef to the United
States based on an annual quota of 680,000 metric tons of which
63,000 metric tons are Wagyu--this agreement does not allow the
United States to export to Australia.
(8) A reciprocal trade agreement needs to be implemented.
(9) Based on the United States/Australia currency exchange
rate, the Australian dollar is valued at approximately 35
percent less than the United States dollar and therefore
Australia can export its Wagyu to the United States at a 35
percent discount. This 35 percent discount applies to Wagyu
meat, semen and embryo sales. This 35 percent discount puts the
American Wagyu producer at an extremely uncompetitive financial
disadvantage.
(10) The United States Government should implement a 70
percent tariff on Wagyu meat, semen and conventional embryos
imported from Australia. This is necessary to create a
competitive balance. (IVF embryos cannot currently be exported
to the United States and despite Australia's recent request, it
should be kept it that way.)
(11) Based on public information produced by Australia,
they are targeting the United States Wagyu market aggressively
as they realize they have a one-sided trade agreement and a
significant financial advantage. From January 2024 to January
2025 Australia exported 63,000 metric tons of Wagyu
(representing 250,000 head) to the United States capturing 48
percent of the United States Wagyu market and 70 percent of the
Wagyu food service (restaurant) market. Simply, every pound of
Australian Wagyu exported to America takes away a pound of
Wagyu which could be sold by an American Wagyu produce.
SEC. 3. AUTHORITY TO TAKE CERTAIN ACTIONS RELATING TO RECIPROCAL TRADE.
(a) In General.--If the President determines that--
(1) the rate of duty imposed by Australia with respect to
wagyu beef, when imported from the United States, is
significantly higher than the rate of duty imposed by the
United States on that wagyu beef products, when imported from
that country, or
(2) the nontariff barriers applied by Australia with
respect to a wagyu, when imported from the United States,
impose significantly higher burdens, alone or in combination
with any tariffs imposed by that country on that good, than the
burdens of the nontariff barriers applied by the United States
with respect to that wagyu beef product, alone or in
combination with any tariffs imposed by the United States on
that wagyu beef product, when imported from that country,
the President may take one or more of the actions authorized under
subsection (b).
(b) Actions Authorized.--The actions authorized under this
subsection are the following:
(1) To negotiate and seek to enter into an agreement with
the Australia that commits the country to reduce the rate of
duty or reduce or eliminate nontariff barriers on the wagyu
beef that is the subject of the determination under subsection
(a).
(2) To impose a rate of duty on imports of the wagyu beef
that is equal to--
(A) the rate of duty imposed by the foreign country
with respect to the wagyu beef product, in the case of
a determination described in subsection (a)(1); or
(B) the effective rate of duty of the nontariff
barriers applied by Australia with respect to the good,
alone or in combination with any tariffs imposed by
that country on that wagyu beef product, in the case of
a determination described in subsection (a)(2).
(c) Factors.--In taking an action authorized under subsection (b),
the President shall consider the following factors:
(1) The tariff classification of the wagyu beef products by
the United States and the tariff classification of wagyu beef
by the Australia.
(2) The rate of duty applied by the United States with
respect to the wagyu beef product and the rate of duty applied
by Australia with respect to the Wagyu beef.
(3) The physical characteristics of the wagyu beef.
(4) The end uses and existence of a competitive
relationship between the wagyu beef import--
(A) as exported from the United States to the
foreign country; and
(B) as imported from the country to the United
States.
(5) The level of exports of the wagyu by the country to the
United States and to Australia.
(6) In the case of a determination described in subsection
(a)(1), the extent to which the rate of duty applied by
Australia with respect to wagyu beef products is impeding or
distorting trade.
(7) In the case of a determination described in subsection
(a)(2)--
(A) the extent of the nontariff barriers applied by
the Australia with respect to wagyu beef, and the
extent of the nontariff barriers applied by the United
States with respect to the wagyu beef products;
(B) the extent to which the nontariff barriers
applied by Australia with respect to the wagyu beef,
alone or in combination with any tariffs imposed by
that country on that good, are impeding or distorting
trade;
(C) the identified purpose of the nontariff
barriers applied by Australia with respect to the wagyu
beef, if any, and the extent to which the nontariff
barriers are more restrictive than necessary to meet
that purpose; and
(D) the degree of transparency of the process by
which Australia adopted the nontariff barriers.
(8) Other factors, as the President determines appropriate.
(d) Role of USTR.--The United States Trade Representative, in
consultation with the Secretary of Treasury, the Secretary of Commerce,
and the heads of other relevant Federal agencies, shall advise the
President in determining the effective rate of duty imposed by the
nontariff barriers applied by Australia with respect to wagyu beef, in
the case of a determination described in subsection (a)(2).
(e) Lower Rate of Duty.--The President may impose a rate of duty on
imports of a wagyu beef products from Australia that is lower than the
rate of duty described in subsection (b)(2)(A) or lower than the
effective rate of duty described in subsection (b)(2)(B), as the case
may be, if the President determines that application of such lower rate
of duty is necessary and appropriate.
(f) Higher Rate of Duty.--If the President imposes a rate of duty
on imports of wagyu beef products from Australia under subsection
(b)(2), and Australia further increases its rate of duty on imports of
the wagyu from the United States, the President may further increase
the rate of duty on imports of the wagyu beef from Australia to a rate
that is equal to the rate of duty applied by that Australia.
(g) Termination.--The President shall terminate the imposition of
any increase in the rate of duty on imports of wagyu beef products from
a Australia under subsection (b)(2) effective on the date on which the
President determines that--
(1) Australia is no longer--
(A) imposing a rate of duty with respect to the
wagyu beef products, as described in subsection (a)(1);
or
(B) applying nontariff barriers with respect to the
wagyu beef products, as described in subsection (a)(2);
or
(2) continued imposition of the increased rate of duty on
imports of the wagyu beef products from the foreign country is
not in the economic or public interest of the United States.
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