The Trump administration on Oct. 22, 2018, announced it was addressing a number of issues under the bilateral
Trade and Investment Framework Agreement (TIFA) with the Philippines. The progress on these issues moves the United States one step closer to free trade agreement negotiations with the Philippines, which is a priority market for U.S. pork producers.
A main issue is the cold storage requirements for imported pork. Under two administrative orders, AO5 and AO6, the Philippines requires all imported meat to be placed in a cold storage facility. However, domestically produced meat is exempt from this requirement, which suppresses demand for U.S. pork, clearly violating World Trade Organization rules related to non-discriminatory treatment of imports.
Another issue to be resolved is the reference price scheme. Under the scheme, many imported frozen pork cuts are assessed duties based on reference prices established by the Philippine government rather than on declared import prices. In effect, the scheme raises import duties significantly higher than those that would apply to the declared price of the product. This, too, is a clear violation of WTO rules.
NPPC lauds the trade progress with the Philippines. NPPC encourages the administration to continue working with the Philippines to establish a free trade agreement with zero tariffs on imported pork.
- The United States over the past 11 years, on average, has been the top pork exporting country worldwide.
- Exports added more than $53 – representing 36 percent of the $149 average value of a hog – to every U.S. hog marketed in 2017, when nearly $6.5 billion of U.S. pork was exported.