Philippines President Ferdinand Marcos Jr. signed an executive order extending reduced tariff rates on imported pork for the third consecutive year. The in-quota duty is to remain at 15%, while the out-of-quota rate is 25%.
In May 2021, in response to a shortage of pork caused by African swine fever (ASF), the Philippines lowered its import duties from 30% and 40%, respectively. It also increased the quota amount, known as the minimum access volume (MAV), to 254,210 metric tons (MT), from just 54,210 MT.
Under the lower tariffs and higher MAV, U.S. pork exports to the Philippines increased to a record $205 million in 2021, a nearly 79% hike. But after the increased quota amount expired on Jan. 31, 2022, exports fell that year to just under $135 million, and for 2023, they likely will be about $120 million. Those amounts were significantly higher than they historically have been.
Why it matters: The Philippines is an important Asian market for the U.S. pork industry. With more than 109 million people and a cultural preference for pork, the island nation is a top 10 market for U.S. pork exports. The country’s lower tariffs on pork imports have helped spur significant increases in U.S. pork exports there.
NPPC’s take: NPPC has been working with the U.S. and Philippines governments to expand access for U.S. pork to the Philippines market and help the Asian country deal with ASF.
