March 30, 2023

 

USMEF requests tariff reductions for US pork in the Philippines

 

The US Meat Export Federation (USMEF) has requested the Philippine Tariff Commission to make permanent, the temporary reductions in the Philippines' Most Favoured Nation (MFN) tariff rates for imported US pork, National Hog Farmer reported.

 

Erin Borror, vice president of economic analysis for the USMEF, said the temporary reductions (from 30% to 15% in quota and 40% to 25% out of quota) implemented in mid-2021 have eased supply restrictions and lessened the effects of African swine fever (ASF) in the Philippines.

 

Borror said the long-term adoption of these tariff reductions would increase pork consumption by reducing the effects of inflation on consumers in the Philippines.

 

He said the Philippines added 200,000 metric tonnes to the 54,000-metric-ton quota, allowing for imports at a 15% tariff rate.

 

He also said the Philippines extended the tariff reductions in 2022, but the quota volume was not increased, so most pork entering the Philippines is subject to a 25% tariff. This remains the highest of any major importing country.

 

Borror said ASF is still a problem in the Philippines, so the Philippine government should have a clear incentive to extend tariff reductions for a longer period of time.

The USMEF said lower tariffs boost pork demand, which benefits both the domestic and global pork industries.

 

Using Korea as an example, Borror said pork consumption has grown there through increased imports and larger domestic production helped by free trade agreements, adding that Korea's tariffs on imported pork have been phased to zero.

 

He said Korea's pork production has grown by roughly 30% to a record level and consumption has grown by 35%, also to a record level. That has been a great example to use on the benefits of free trade to domestic producers, consumers and exporters.

 

-      National Hog Farmer