IARN — The U.S. Meat Export Federation says Vietnam’s plans to reduce its Most Favored Nation (MFN) tariff rate on imported frozen pork cuts is a step in the right direction that will narrow the tariff disadvantage US pork faces in the price-sensitive market.
USMEF economist Erin Borror explains that the rate will soon be lowered to 10% – the same reduction that was temporarily implemented in the second half of 2020 in an effort to bolster pork supplies and stabilize prices as Vietnam dealt with the impact of African swine fever (ASF). This temporary rate reduction expired on Jan. 1 of this year.
“The White House announcement came after our vice president’s visit to Vietnam,” said Borror. “It’s excellent that pork made the list of important trade issues. We know our industry has been hammering that home for some time now, especially since we left the TPP.”
Borror adds that the tariff relief appears to be well-timed, as the COVID-19 pandemic has created pork production obstacles that may be slowing Vietnam’s ASF recovery efforts.
“There’s a concern that the ASF situation could be worsening as hogs are kind of stuck on-farm,” said Borror. “People, feed and inputs have had a hard time moving around. The question is, how much is this going to hinder Vietnam’s pork production recovery going into next year? Even though we are seeing challenges in the market today, there could be big opportunities in the market tomorrow. For the US to really get in there and compete, any type of tariff relief is necessary.”
For more information, visit usmef.org.
