The National Pork Producers Council (NPPC) has called for an end to the US-China trade dispute, claiming that China’s 25% import tariff on US pork could cost the industry $2.2 billion every year.
China implemented the sanctions in response to the US’s imposition of tariffs on aluminium and steel imported from China, and research conducted by Iowa State University Economist Dermot Hayes claims that pork prices have dropped significantly, mainly as a result of the tariff.
Iowa States’ Hayes said: “Since March 1, when speculation about Chinese retaliation against US pork began, hog futures have dropped by $18 per animal, translating to a $2.2 billion loss on an annualised basis.
“While not all of this lost value can be attributed to trade friction with China, it is certainly the main factor.”
A statement from the NPPC claims that US pork production is at record levels and that US pork exports could surge if tariffs were lifted, and the organisation has urged the US government to ease tensions with the Chinese administration.
Jim Heimerl, president of the NPPC added: “US pork has invested significantly to ramp production to capitalise on growth opportunities around the world, including China and other markets throughout the Asia-Pacific region.
“We applaud the administration for making the expansion of agriculture exports a cornerstone of the discussions with China.
“We hope the next round of trade talks with China results in improved market access to a critical export market for US pork and other farm products.
“We produce the safest, highest-quality and most affordable pork in the world. We are dependent on exports and are one of the few sectors of the US economy that can immediately reduce the trade imbalance with China, where pork represents approximately 10% of the consumer price index.
“Eliminating punitive tariffs and improving access to China by eliminating or reducing tariffs on frozen and chilled pork would result in an explosion of pork exports, contributing significantly to US economic growth and reduction of the trade deficit.”
© FoodBev Media Ltd 2019