Philippines President Ferdinand Marcos Jr. signed an executive order to maintain lower tariff rates on imported pork through 2024. This move extends the reduced in-quota duty at 15% and the out-of-quota rate at 25% for the third consecutive year.
Initially, in response to the African swine fever (ASF) crisis causing a pork shortage, the Philippines lowered these import duties from 30% and 40% in May 2021. To further alleviate the situation, the government increased the minimum access volume (MAV) for pork imports to 254,210 metric tons from the previous 54,210 metric tons.
This policy change led to a substantial increase in U.S. pork exports to the Philippines, hitting an all-time high of $205 million in 2021, marking a near 79% increase. However, following the expiry of the increased quota in early 2022, exports declined to under $135 million that year. Projections for 2023 suggest a figure around $120 million, significantly higher than prior to the policy changes.
The Philippines is an essential market for U.S. pork exports, given its large population and cultural preference for pork. The sustained lower tariffs on pork imports are crucial for continuing growth in U.S. pork exports to this key Asian market.
The National Pork Producers Council (NPPC) is actively engaged with the governments of both the U.S. and Philippines. Their efforts focus on expanding U.S. pork access to the Philippines market and assisting with ASF management. This continued partnership highlights the strategic value of the Philippines in the international pork trade sphere.
Source : wisconsinagconnection