![“Asian exporters are paying premium shipping rates, sometimes 10 times what the rate is for going from the [United] States back to Asia, and this shipping rate disparity incentivizes sending back those empty containers,” Borror said.](https://assets.farmjournal.com/dims4/default/30ae430/2147483647/strip/true/crop/840x561+0+20/resize/800x534!/format/webp/quality/90/?url=https%3A%2F%2Ffj-corp-pub.s3.us-east-2.amazonaws.com%2Fs3fs-public%2F2021-02%2FExport-ship-840.jpg)
African swine fever (ASF) has had a dramatic impact on pork production in the Philippines, where agricultural officials are considering a number of options for bolstering pork supplies and stabilizing prices.
U.S. Meat Export Federation (USMEF) economist Erin Borror explains in the audio clip above that the Philippines’ ability to supplement inventories with imported pork is hampered by very high tariff rates. Imported pork cuts entering the Philippines are subject to a 30% tariff up to an annual quota of 54,000 metric tons. Beyond that volume, the rate jumps to 40%. Borror notes that these tariffs – which are the highest of any major import market in the world – are especially difficult to pass along to consumers because the Philippines is a very price-sensitive market.
An interagency committee is examining the situation and importers could see some relief this month – either in the form of lower tariff rates, a larger quota, or some combination.
The United States was the only major pork supplier to post an increase in exports to the Philippines in 2020, with volume (through November) increasing 13% to more than 42,000 metric tons, valued at $104 million (up 19%).
