US pork producers ‘concerned’ as China raises import tariffs despite African swine fever, high demand

Tariffs for most favoured nations will return to 12 per cent on January 1, from 8 per cent currently, according to a finance ministry statement on Wednesday
China lowered its tariffs on frozen pork in 2020 as the country faced soaring domestic meat prices in the aftermath of a devastating outbreak of African swine fever

China trade

Reuters

Published: 9:09am, 16 Dec 2021

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China will raise import tariffs on most pork products next year after the world’s top producer rapidly expanded domestic production and reduced its needs for imports.

Tariffs for most favoured nations will return to 12 per cent on January 1, from 8 per cent currently, according to a finance ministry statement on Wednesday.

China lowered its tariffs on frozen pork in 2020 from 12 per cent to 8 per cent as the country faced soaring domestic meat prices in the aftermath of a devastating outbreak of African swine fever, a pig disease.

Imports surged to a record and remained at high levels through the first half of the year, even as the hog herd recovered and prices fell below production cost by the third quarter.

‘Sustained rebound’ doubtful despite energy fuelling China’s import boom

“Adjusting rates in a timely manner can help secure supplies and stabilise prices in the domestic market by reasonably using the international market,” said Zhu Zengyong, researcher with the Chinese Academy of Agricultural Sciences.

The higher rates will further slow imports from top exporters like the United States and Spain that have already dropped sharply in recent months.

Most US pork shipments to China face a 25 per cent retaliatory tariff imposed during the trade war between Washington and Beijing, in addition to the most favoured nations (MFN) tariff.

After years of working to remove tariffs, we are disappointed to see China’s foreign ministry announce the increase in MFN tariffs on pork

Maria Zieba

“After years of working to remove tariffs, we are disappointed to see China’s foreign ministry announce the increase in MFN tariffs on pork,” said Maria Zieba, assistant vice-president of international affairs for the National Pork Producers Council in Washington.

“This is especially concerning given ongoing issues with African swine fever and the high demand for pork in China.”

October pork arrivals in China fell by 40 per cent on the prior year to 200,000 tonnes, though imports in the year to date have only slipped 8 per cent on a year ago to 3.34 million tonnes, according to customs data.

“Any increase in tax makes it more challenging to exporters,” said Joel Haggard, senior vice-president for the Asia-Pacific at the US Meat Export Federation.

China’s new pig farmers determined to ‘hold on’ despite heavy losses

China’s Hebei province said on Wednesday that it has confirmed a new African swine fever outbreak in pigs being transported from other provinces.

The virus was found in two trucks, halted in the coastal city of Qinhuangdao in the east of the northern province, the Hebei provincial Department of Agriculture and Rural Affairs said on its website.

The trucks were carrying 245 pigs, with nine dead. All the pigs were later culled, according to a notice published on the website of the provincial agricultural department.

African swine fever decimated China’s massive pig herd after it was first detected in 2018. Beijing has been taking various measures to rebuild pig stocks, which have returned to normal levels, according to authorities.

China last reported the deadly disease in its southwestern province of Sichuan and the Inner Mongolia region located in the country’s northeast