As the Philippines conducts a review of its import tariffs, the U.S. Meat Export Federation (USMEF) is using the opportunity to encourage tariff relief for U.S. pork.
In an ongoing inflation battle, the Philippines were ahead of other countries to reduce pork and other meat tariffs, says Erin Borror, USMEF vice president of economic analysis.
“The Philippines had their tariff reductions starting in 2021, and this was largely due to their pork shortage due to African swine fever (ASF),” she notes.
In 2021, the country added 200,000 metric tons (mt) to the approximately 54,000 mt quota. Temporary reductions, from 30% to 15% in quota and from 40% to 25% out of quota, have also helped smooth supply constraints and mitigate impacts of ASF in the country, Borror explains.
In 2022, the country extended these tariff reductions, yet did not increase quota volume. While the tariff is reduced (from 40% to 25%), Borror says, it’s “still at the highest of any of the major importing countries.”
With ASF spreading in the country, Borror believes there is clear incentive for the Philippine government to extend tariff reductions for a longer period of time. Adoption of these tariff reductions could bolster pork consumption, continue easing the impacts of inflation for Philippine consumers and support both domestic and global pork industries.
For example, South Korea has been a country of increasing pork consumption through larger imports and larger domestic production helped by free trade agreements, Borror explains.
“Since implementation in 2012, [South] Korea’s tariffs on imported pork have been phased to zero. At the same time, Korea’s pork production has grown by roughly 30% to a record level and consumption has grown by 35% to a record level. That has been a great example to use on the benefits of free trade to everyone – domestic producers, consumers and the exporters,” she says.
