U.S. Pork Losses from Trade Dispute with Mexico: $1.5 Billion
Losses Attributed to China Dispute Estimated at $1 Billion
WASHINGTON, D.C., November 30, 2018 – The National Pork Producers Council (NPPC) today called for an end to a trade dispute that has cost U.S. pork producers an estimated $1.5 billion this year, according to Iowa State University Economist Dermot Hayes.
“We are very pleased with the new trade agreement with Mexico and Canada, one that preserves zero-tariff pork trade in North America for the long term,” said NPPC President Jim Heimerl, a pork producer from Johnstown, Ohio. “But, it’s imperative that we remove U.S. tariffs on Mexican metal imports so that retaliatory tariffs of 20 percent against U.S. pork are lifted.”
Dr. Hayes estimates that live hog values this year have been reduced by $12 per animal due to retaliatory tariffs imposed by Mexico against U.S. pork in June. The loss estimate of $1.5 billion is based on an expected total harvest of 125 million hogs in 2018. These tariffs, along with China’s retaliatory tariffs, have turned what promised to be a profitable year into a year of losses for export-dependent U.S. pork producers. Dr. Hayes estimates U.S. pork producer losses of $ 1 billion, or $8 per animal, from the ongoing trade dispute with China.
Mexico and China represent approximately 40 percent of total U.S. pork exports.
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| NPPC is the global voice for the U.S. pork industry, protecting the livelihoods of America’s 60,000 pork producers, who abide by ethical principles in caring for their animals, in protecting the environment and public health and in providing safe, wholesome, nutritious pork products to consumers worldwide. For more information, visit www.nppc.org. |