IARN — Vietnam has reduced its most-favored-nation (MFN) rates for imported pork.
The move was made in response to the country’s domestic pork production being heavily impacted by African swine fever. Erin Borror, U.S. Meat Export Federation Economist, explains the recent announcement impacting the Vietnamese pork industry.
“USDA estimated that Vietnam’s pork production last year was down at least 15 percent,” Borror said. “That will fall by more than five percent again this year. The swine inventory dropped by 13 percent. There has been some talk for many months now about Vietnam potentially reducing import tariffs because, despite a surge in hog and pork prices, imports have not grown enough to fill the shortage.”
Borror says the MFN rate reductions are timely for the U.S. pork industry.
“The tariff rate on frozen pork dropped from 15 percent to 10 percent for the rest of this year, so that’s fairly comparable with what Canadian pork is paying under CPTPP,” she said. “The rate on most variety meats remains at eight percent. It’s not entirely clear to me when this will be implemented and fact, but it’s basically in the final stages. In the short run, this puts the U.S. – and everyone else – on a level playing field.”
In the first quarter of 2020, U.S. pork exports to Vietnam increased 251 percent from last year, valued at just under $10 million.
Story courtesy of the Iowa Agribusiness Radio Network.
