IARN — The Philippine government is expected to discuss a proposal to reduce its pork tariff rates for in-quota and out-quota imports.
African Swine Fever has had a dramatic impact on pork production in the Philippines. As a result, agricultural officials in the country are considering a number of options for bolstering pork supplies and stabilizing prices. U.S. Meat Export Federation economist Erin Borror says the Philippines’ ability to supplement inventories with imported pork is hampered by very high tariff rates.
“The Philippines has the highest tariffs of any major import market,” Borror said. “They have a 30 percent tariff on imports of pork cuts, and that’s within a 54,000-ton quota. Anything over that pays a tariff of 40 percent. Their imports of pork cuts you have the double whammy of it being a price sensitive market and the highest tariffs in the world. It’s somewhat capped their ability to import.”
Borror says an interagency committee is examining the situation and importers could see some relief this month – either in the form of lower tariff rates, a larger quota, or some combination.
“What’s unfolding is that the Philippine government is looking at the need to reduce these tariffs because prices have surged so much,” Borror said. “The Philippines’ Department of Agriculture did create a committee to track the pork shortage. They are expected to submit a recommendation to the Ag Secretary. Hopefully, we will know something more here at the start of February.”
The United States was the only major pork supplier to post an increase in exports to the Philippines in 2020, with volume (through November) increasing 13% to more than 42,000 metric tons, valued at $104 million (up 19%).
The National Pork Producers Council has announced it welcomes the Philippines’ proposal on tariff reductions, as the Philippines holds tremendous market opportunities for U.S. pork exports.
Story courtesy of the Iowa Agribusiness Radio Network
Image source: Wikimedia commons
