President Donald Trump signed an executive order on Friday that increases fourfold the volume of beef imports from Argentina to the United States under a newly established trade agreement with the South American nation.
The agreement will “grant an unprecedented expansion of preferential access for Argentine beef to its market by 100,000 tons,” an increase of “$800 million in Argentine beef exports,” Argentina’s Foreign Ministry wrote in a statement.
Titled “Ensuring Affordable Beef for the American Consumer,” Trump’s executive order states that U.S. production capacity has not kept pace with rising demand in recent years, resulting in higher prices.
The order cites that beef costs reached $6.69 per pound in December, the highest level recorded since the Department of Labor began tracking prices in 1984, according to the Federal Reserve.
The deal authorizes the import of an additional 20,000 metric tons of beef each quarter at a reduced tariff rate through the end of the year.
Although the agreement represents a significant gain for Argentina, Republican lawmakers have expressed concern over expanding Argentine beef imports, citing potential harm to the domestic sector.
The leading association for American cattle ranchers criticized the move as a ‘misguided effort,’ warning it would undermine the livelihoods of U.S. cattle producers while having only a minimal effect on grocery store prices for consumers.
In October, when reports emerged about plans to increase beef imports, the National Cattlemen’s Beef Association stated that it could not support the President, asserting that importing Argentinian beef threatens the long-term interests of farmers and appears aimed at manipulating market prices.
Under the deal with Argentina, the United States will also eliminate reciprocal tariffs on a range of Argentine goods while reviewing existing duties on steel and aluminum.
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