Philippines Weighing Possible Reductions in Pork Tariff Rates

African swine fever 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 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%).

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The U.S. Meat Export Federation (www.USMEF.org) is the trade association responsible for developing international markets for the U.S. red meat industry. It is funded by USDA; the beef, pork, lamb, corn and soybean checkoff programs, as well as its members representing nine industry sectors: beef/veal producing & feeding, pork producing & feeding, lamb producing & feeding, packing & processing, purveying & trading, oilseeds producing, feedgrains producing, farm organizations and supply & service organizations. USMEF complies with all equal opportunity, non-discrimination and affirmative action measures applicable to it by contract, government rule or regulation or as otherwise provided by law. USMEF is an equal opportunity employer and provider.