Inflation prompts some trading partners to cut tariffs on red meat
Korea joins Mexico, the Philippines, Taiwan, Vietnam and Brazil in reducing or eliminating tariffs on certain food items to lower consumer prices.
Source: U.S. Meat Export Federation (USMEF)
via National Hog Farmer - Jun 15, 2022
Amid global food price pressures, many countries are revisiting trade tariffs on food items. According to U.S. Meat Export Federation President CEO Dan Halstrom, the moves are providing unprecedented global access to some markets.
"Some of our global customers have higher rates of inflation than us," says Halstrom. "So now is the time to try to reduce that impact and one way to do it is to offset or reduce or eliminate existing inbound tariffs."
USMEF Vice President of Economic Analysis Erin Borror says there have already been significant tariff reductions.
"Mexico eliminating tariffs on imports of beef, pork and poultry, that's a bigger step than we've seen from them in the past," Borror says. "The Philippines also reducing tariffs on imported pork, but that was an extension of what was in place starting last year to help deal with their African swine fever related shortage.
"And the announcement for Vietnam actually came last year where they're planning to reduce the tariff rate on pork imports in July of this year. One of the newest developments would be Korea announcing a duty-free quota for imports of pork."
Taiwan also slashed their import duty on beef in half and Brazil eliminated their beef tariff. The tariff shifts have opened opportunities like the expansion of U.S. pork promotions in traditional retail in the Philippines.
"Many local vendors have shifted to selling imported pork, U.S. pork, primarily because of the lower price in the retail section, around maybe like 30 to 40% cheaper," says USMEF Representative for the Philippines Dave Rentoria…