United States pork producers expressed concerns about trade at the World Pork Expo.
Yesterday, Mexico implemented retaliatory tariffs on United States, unprocessed pork products. The tariff will start at ten-percent and increase up to 20% by July 5. The nation also placed a 20% tariff on U.S. ham and pieces of ham, as well as fresh and frozen pork legs, shoulders and their boneless pieces.
Under Secretary for Marketing and Regulatory Programs Greg Ibach visited with United States pork producers about the retaliatory tariffs at the World Pork Expo. Ibach says farmers seem ?concerned? about the recent tariffs. National Pork Producers Council (NPPC) CEO Neil Dierks says concerned is an understatement.
“A lot of people like to focus on the here and now,? Dierks said. ?The real damage is we’ve spent decades building these markets. The longer things go on (in) this kind of condition and atmosphere, the more our competitors have the opportunity to replace us in these markets because these duties will make us less competitive.”
Iowa State University economist Dermot Hayes claims United States pork producers have lost $2.2 billion on an annualized basis due to events leading up to and following China?s threat to implement punitive tariffs on United States pork. Ibach says staff at the U.S. Department of Agriculture hears the concerns of pork producers and are working to resolve trade tensions.
?Farmers and ranchers understand the trade field hasn?t been level for them in the past. There?s tariffs, sanitary and phytosanitary complications in the trade marketplace that have affected their access and ability to be even more successful than they?ve been. I think there?s a lot of hope that through this discussion we?re going to fix some of those concerns and provide greater opportunities,? Ibach said.
National Pork Producers Council director of international affairs Maria Zieba says United States pork producers need export opportunities, as they look to expand production.
?We have five new processing plants that recently opened or (will) soon begin operation for U.S. pork production, which means an increase (in) capacity, about seven-percent this year or 10% since 2015 levels,? Zieba said. ?Obviously that has us concerned. We need as many markets open with as fewer tariffs or other restrictions on our market, so we definitely need to have a resolution to this as soon as possible, given how many animals are coming online.?
