Philippines

Background

On Oct. 22, 2018, the Trump administration announced it was addressing several 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, a priority market for U.S. pork producers.

A main issue is the cold storage requirements for imported pork. Under two administrative orders, 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 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 another clear violation of WTO rules, the scheme raises import duties significantly higher than those that would apply to the product’s declared price.