After decades of work, the world’s second-most populous nation is allowing imports of U.S. pork and pork products. Industry leaders say this presents a major opportunity for U.S. pork producers.
India, which had a de facto ban on U.S. pork, has a population of 1.26 billion. The potential market opportunity is significant, the National Pork Producers Council (NPPC) said in a release. The agreement with the U.S. sets the stage for larger trade discussions.
“We look forward to the new access, which will allow us to provide affordable, wholesome and nutritious U.S. pork products to consumers in India,” NPPC President Jen Sorenson said.
This decision, announced yesterday by U.S. Agriculture Secretary Tom Vilsack and U.S. Trade Representative Katherine Tai, marks the first time India will allow U.S. pork into the country. The development comes after decades of negotiations between the two countries and the successful revitalization of the U.S.-India Trade Policy Forum held in New Delhi last November.
Gaining access to this market has been a top priority for the U.S. pork industry. U.S. Meat Export Federation (USMEF) President and CEO Dan Halstrom said, “USMEF’s international staff conducted market research in India in recent years and the industry contacts developed at that time are excited for the opportunity to import U.S. pork and pork products.”
In June 2019, the Office of the U.S. Trade Representative terminated India’s participation in the Generalized System of Preferences (GSP) program, which provides developing countries beneficial access to the U.S. market. USTR took that action because India did not provide equitable and reasonable U.S. access to its markets, including for U.S. pork.
Although the volumes of imported pork currently entering India are quite small, Halstrom believes there is great long-term potential in the retail, processing and foodservice sectors, as well as emerging opportunities in e-commerce.
“U.S. pork producers, processors and packers are going to benefit from the expanded market access that this agreement will bring,” Meat Institute President and CEO Julie Anna Potts said in a statement.
In 2020, the U.S. was the world’s third-largest pork producer and second-largest exporter, with global sales of pork and pork products valued at $7.7 billion.
NPPC is continuing to pursue elimination of China’s retaliatory tariffs on U.S. pork, which are 37%, while competitors’ are only 12%; broader market access in Southeast Asia, including through permanent reduction of tariffs in Vietnam and the Philippines; and unfettered market access for U.S. pork in Brazil, Ecuador, Indonesia, Jamaica, South Africa and Thailand, and markets that are completely closed or only partially open to U.S. pork exports.
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