H.R. 2393

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2393 Introduced in House (IH)]

<DOC>

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.
<all>