Philippines Opens Market Access for Pork Imports
The Philippine government announced on April 7 that it will provide more market access for pork imports to combat rising pork prices and stabilize supplies. The National Pork Producers Council (NPPC) said in a release that securing better access to the Philippines market has been a top, long-term trade priority.
“Since 2019, the Philippines has been battling African swine fever (ASF), and as a result, domestic production has declined, supplies have tightened, and pork prices have spiked,” said NPPC President Jen Sorenson, communications director for Iowa Select Farms in West Des Moines, Iowa, in a release. “While we are saddened by the spread of ASF in the Philippines, we appreciate the opportunity to send more high-quality U.S. pork to ease the shortage and the spike in prices.”
Beginning April 7, tariffs for imported pork under the increased minimum access volume (MAV) of 404,210 metric tons (MT) would be reduced from 30% to 5% for the next three months, and then 10% thereafter, the announcement said. Tariffs for imported pork above the MAV would be reduced from 40% to 15% for the next three months, and then increase to 20% thereafter. The reductions would be in effect for one year, NPPC said in a release.
This announcement comes on the heels of NPPC’s recent meeting with the Philippine Ambassador to the U.S. Jose Manuel Romualdez. NPPC has been pressing both the U.S. and Philippines governments to lower pork import tariffs since ASF outbreaks began in the Philippines, the release said.
From January through December 2020, the U.S. exported 49,660 MT of pork worth $121 million. Expanding this market access is expected to generate significantly more U.S. pork exports to the country.
"With a population of 109 million and pork as the preferred protein of choice, pork consumption will continue to increase as the economy grows," NPPC said.
Not only is the Asia-Pacific region the fastest growing economic region of the world, but it holds significant opportunities for U.S. pork exports. NPPC said they will continue to advocate for the U.S. to rejoin the CPTPP trade agreement.
A Growing Opportunity
In December 2020, a new report form the National Pork Board demonstrated opportunities that could diversify U.S. pork exports in the Philippines. The market assessment was prepared by Gira, a global research firm, with funding from the Pork Checkoff and the USDA Foreign Agricultural Service Emerging Markets Program.
According to Gira’s research, as the Philippines recover from COVID-19 and ASF outbreaks, pork consumption and import demand will increase. This projected increase is counter to other key markets, where pork consumption is expected to shrink by 2030. Here's a look at key insights from that report.
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