Section 1 Short title
This Act may be cited as the “Protect American Beef Act.”
Protect American Beef Act.
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.
Sec. 2 Findings
Congress finds the following:
Wagyu is a breed of cattle from Japan.
Today over 20 countries around the world raise Wagyu based upon these foundation animals exported to the United States from Japan.
The Wagyu industry is growing significantly in the United States.
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.
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.
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.
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.
A reciprocal trade agreement needs to be implemented.
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.
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.)
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
In general— If the President determines that—
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
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,
Actions authorized— The actions authorized under this subsection are the following:
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).
To impose a rate of duty on imports of the wagyu beef that is equal to—
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
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).
Factors— In taking an action authorized under subsection (b), the President shall consider the following factors:
The tariff classification of the wagyu beef products by the United States and the tariff classification of wagyu beef by the Australia.
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.
The physical characteristics of the wagyu beef.
The end uses and existence of a competitive relationship between the wagyu beef import—
as exported from the United States to the foreign country; and
as imported from the country to the United States.
The level of exports of the wagyu by the country to the United States and to Australia.
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.
In the case of a determination described in subsection (a)(2)—
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;
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;
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
the degree of transparency of the process by which Australia adopted the nontariff barriers.
Other factors, as the President determines appropriate.
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).
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.
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.
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—
Australia is no longer—
imposing a rate of duty with respect to the wagyu beef products, as described in subsection (a)(1); or
applying nontariff barriers with respect to the wagyu beef products, as described in subsection (a)(2); or
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.