The U.S. pork industry received good news from a major trading partner. The Philippines will extend reduced tariff rates on imported pork for another year.
The rate cuts were first implemented in 2021 in an effort to stabilize pork supplies, as the Philippines struggled with African swine fever. The reductions were set to expire Dec. 31, but will now remain in place through the end of 2024.
U.S. Meat Export Federation President and CEO Dan Halstrom explains that duty rates are now 15 percent for in-quota imports, down from the normal rate of 30 percent. Duty rates are now 25 percent for out-of-quota imports, which is down from the normal 40 percent.
“While this is good news, still, even at these lower rates, it’s still a relatively high duty,” Halstrom says.
USMEF is hopeful that the Philippines will eventually offer longer-term tariff relief. Halstrom notes that making pork more consistently accessible and affordable can improve food security and bolster consumption, and this can actually benefit domestic pork producers.
“That’s the ultimate goal in many of these markets is to create a situation where per capita consumption increases over time, which then benefits not only imports, but the domestic pork industry as well in the Philippines,” Halstrom says.
He cites South Korea and Colombia as examples of markets in which lower tariffs have helped increase demand, benefiting both domestic and imported pork.
“Now, they’re much lower or duty free, and we’re seeing a situation there where industry is expanding, per capita consumption has grown over time, and that has benefited the domestic pork in both South Korea and Colombia,” Halstrom says. “At the same time, imports have been booming. So that’s the ideal situation – if you can grow the pie in whole, it benefits all parties.”
