U.S. Pork Hamstrung By Tariff, Non-Tariff Trade Barriers to Vietnam

Trade remains crucial to the continued success of the U.S. pork industry. In any given year, U.S. pork producers ship product to more than 100 countries. Exports contribute significantly to the bottom line of all U.S. pork producers, and last year, we exported nearly $8 billion of pork. Enhancing and expanding access to markets around the world is essential to pork producers. 

While NPPC is focused on expanding market access to a number of countries, one of the more immediate export opportunities is Vietnam, a major pork-consuming nation dealing with African swine fever outbreaks in its domestic herd. The country is in need of affordable, reliable pork, yet unwarranted tariff and non-tariff barriers restrict the United States from supplying this major pork-consuming nation with affordable, high-quality pork.

Removing Vietnam’s unwarranted tariff and non-tariff barriers to U.S. pork is among NPPC’s top priorities for its upcoming spring Legislative Action Conference. As producers meet virtually with their lawmakers in Washington, D.C., one key message will be to help expand market access to Vietnam, providing a key growth opportunity for the U.S. pork sector.

There is a tremendous opportunity for U.S. pork exports to Vietnam. Last year, the country only imported 25,000 million metric tons (MT) of U.S. pork, while Mexico, the second largest importer of U.S. pork by volume, imported 735,000 MT. Mexico may be geographically closer, yet Vietnam's approximately 96 million consumers annually consume 57 pounds of pork compared to 31 pounds consumed annually by Mexican consumers. 

Vietnam did take an initial step forward last year in addressing the U.S. pork tariff disadvantage when, from July-December 2020, it temporarily reduced its Most Favored Nation (MFN) tariff rates from 15 percent to 10 percent for frozen U.S. pork products. As a result, U.S. pork exports doubled during that timeframe when compared to the first half of the year. The surge in exports during the tariff reprieve, coupled with Vietnam’s growing population and cultural preference for high-quality pork, demonstrates that the United States is barely scratching the surface of its export potential to Vietnam.

NPPC will continue to seek enhanced market access to a country in need of affordable, reliable sources of pork. Additionally, NPPC continues to push for increased market access with the Philippines, Australia, India, South Africa, Indonesia, Thailand and Ecuador, among other countries.

Read more from Farm Journal's PORK:

Do Imported Rescue Dogs Pose Threat to Livestock Industry?

African Swine Fever in China: A Truth Somewhere in Between, Vilsack Says