US pork 'tariff-free' to China from 2020

In the new year, China will definitely put an end to the increased import duties on American pork and many other (agricultural) products. The country is thus attempting to boost the economy. 

It was announced at the beginning of this month that China would stop a 25% import tariff on American pork already confirmed by the Secretary of Commerce. Now the country has announced that the rate will be definitively reduced from the beginning of next year, to 8%. That is lower than the 12% levy that China normally uses as a lower limit.

Own sake
This is largely self-interested, given that China is struggling with a major shortage of pork. As a result of the outbreaks of African swine fever in the country, the meat shortage is estimated by Rabobank to reach no less than 2020 million tons in 20. Pig prices in China are skyrocketing, forcing consumers to dig deep into their pockets. 

A total of 859 American products have been designated for reduced import tariffs. Avocados and parts for smartphones are also on the list. With the cuts, China is trying to give the economy a boost. The outlook is bleak, as growth threatens to fall to 6% next year. This while China was able to easily refute double-digit growth in the years before. 

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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