JAPAN'S LEGISLATURE CONSIDERS BILL TO AVOID

UNCLAS TOKYO 000597 SENSITIVE SIPDIS USTR FOR AUSTR CUTLER AND DAUSTR BEEMAN PLEASE PASS TO USDA E.O. 12958: N/A TAGS: ETRD EAGR PGOV JA SUBJECT: JAPAN'S LEGISLATURE CONSIDERS BILL TO AVOID RAISING AGRICULTURE TARIFFS REF: 08 TOKYO 822 ¶1. (U) Japan's Lower House is deliberating a bill to extend for one year temporary tariff rates -- including beef and pork tariffs -- that will otherwise expire March 31. This same problem has occurred in previous years. Covering 417 tariffs in total, mostly for agriculture products, the bill to revise partially the Customs Tariff Law would maintain the current applied 38.5 percent tariff on beef rather than allow it to rise to Japan's "bound" level of 50 percent. The Diet has approved this "temporary" extension every year since 2001, a necessary step to keep Japan's tariffs in line with agreements reached during the Uruguay Round. ¶2. (SBU) Both the Lower and Upper House must approve the bill before March 31 to ensure no disruption in current tariff arrangements. Last year, the Upper House approved the extension on the final day, a reflection of the tension that exists between the Liberal Democratic Party-dominated Lower House and Upper House, which is controlled by the opposition Democratic Party of Japan. Agriculture Ministry officials and others suggest the vote this year will similarly come down to the wire, but expect the Diet to approve the legislation by the March 31 deadline. ZUMWALT