Inflation prompting some trading partners to cut tariffs on red meat
By Riley Smith, Iowa Agribusiness Radio Network
June 22, 2022
South Korea is the latest country to suspend import duties on pork and other food items in an effort to combat inflation. Korea joins Mexico, the Philippines, Taiwan, Vietnam, and Brazil in reducing or eliminating tariffs on certain food items to lower consumer prices. While these tariff reductions sometimes benefit global competitors more than U.S. red meat, the overall trend is positive in that it recognizes the heavy burden tariffs place on consumers. U.S. Meat Export Federation (USMEF) President and CEO Dan Halstrom explained how food price pressures are driving the move toward lower tariffs.
For several of these countries, cutting tariffs is a bigger step than what we’ve seen from them in the past. USMEF Vice President of Economic Analysis Erin Borror talked about some of the recent tariff changes.
With lower tariffs and, thus, lower retail prices, we could see an increase in demand in some of these countries. USMEF representative for the Philippines Dave Rentoria said a tariff reduction on pork imports, prompted by African Swine Fever, has opened the door for U.S. pork in that country’s retail sector.
These tariff cuts will also benefit some competitors, but the U.S. should still see plenty of opportunities. Borror said that, while some tariff reductions benefit competitors more, the U.S. had a head start in many markets because of early trade agreements.
The potential could extend even further if other countries adopt these tariff cuts...
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