This document summarizes a presentation given at the 2015 Pork Management Conference on international pork trade. It provides global and regional pork export statistics for 2013-2014 and discusses several free trade agreements that have increased US pork exports. Barriers to pork trade with key markets like China, the EU, and Vietnam are outlined. Ongoing efforts by NPPC to address these barriers and expand market access are also summarized.
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Trade Update
1. 2015 PORK Management
Conference
âYour Pork Industry Investmentâ
New Orleans, Louisiana
Maria C. Zieba
Manager of International Affairs
National Pork Producers Council
June 18, 2015
5. ⢠Pacific Maritime Association (PMA) and the International
Longshore and Warehouse Unionâs (ILWU) ratified their
contract the week of May 18.
⢠Q1 2015 export numbers reflect the severity of the issue
⢠Shipping companies charged unjust fees for their inability
to pick up and drop off containers/equipment during
slowdowns
â Added costs to producers
⢠NPPC continuing to play an active role and meet with U.S.
officials and other groups
â Proposed legislation to avoid future instances in the pipeline
West Coast Port Slowdown
6. Transportation Legislation
⢠S. 1298 Port Performance Act: Measure port productivity to
identify port disruptions before they cause economic
damage and to enable more rapid and effective response
â Cosponsors: Senators Thune, Gardner, Fischer and Alexander
⢠S. 1519 Protecting Orderly and Responsible Transit of
Shipments (PORTS) Act of 2015: Measure to amend the
National Labor Relations Act to provide additional
authority to governors under Taft Hartley specific to port-
related issues.
â Cosponsors: Senators Gardener and Alexander
7. COOL
⢠United States lost final COOL appeal on May 18th
⢠Retaliation could be implemented within months
⢠Repeal bill passed in House
â Repeal on the Senate side will be an uphill battle
⢠Request of $3 Billion retaliation to be imposed in key states
⢠President Elect John Weber participated in hearing on March 25
on COOL
â Senate Hearing scheduled June 25
⢠COOL Reform Coalition
â Meat sector involvement, but led by Corn Refiners Association, National
Association of Manufacturers and the Chamber of Commerce
⢠Fix needs to be WTO Compliant
8. Trade Promotion Authority
⢠TPA passed through Senate on May 22
â Poison pill amendments failed
â NPPC signed on letters opposing two amendments
⢠Senate passed Trade Adjustment Assistance (TAA)
⢠Trade Preferences (AGOA, Haiti and GSP) and Customs
Reauthorization also passed through Senate in May
⢠House voted to pass TPA on June 12 but bill structure
prevents full passage
â New vote TODAY
â 219 to 211; 28 Democrats joined Republicans
â Tougher fight in House than in the Senate
â Tea Party Republicans and Democrats problematic
9. Trade Promotion Authority
⢠National Congressional Outreach
â January Statement & Letter to the Hill
â Letter to Congress with NPPC and 70 other food and Ag groups
â Letter to Congress from NPPC and 39 State pork producer affiliates
â NPPC very active on the Trade Benefits America Steering Committee
â NPPC acts as secretariat for all the Ag groups in setting up Ag specific
Hill TPA meetings separate from Trade Benefits America meetings
â NPPC set up Ag TPA briefings for House and Senate staff
â NPPC regularly shares intel with all the Ag groups
â NPPC producer testified at House Ag Committee hearing on importance
of trade to U.S. agriculture
â Politico webpage takeovers
â Sponsorship of Politico Playbook, Politico Morning Trade and Politico
Morning Ag at various times during the past three months
â Letters to reject poison pill amendments
10. ⢠State and Local Outreach
â State Ag groups sent letters to their congressional delegation
⢠California, Illinois, Indiana, Iowa, Kansas, Michigan, Nebraska, North
Carolina, Ohio, Oklahoma, Oregon, Texas, Washington, Wisconsin
â Grassroots pork producer Call to Action generating producer
letters
â Op-Eds
â Reaching out to consumers through Keep Food Affordable
(KFA) website
Trade Promotion Authority
15. DR- CAFTA
0
5,000
10,000
15,000
20,000
25,000
MetricTons
Year
Honduras Dom. Rep. Guatemala Costa Rica El Salvador Nicaragua Panama
EIF
Mar/Apr/Jul
2006
U.S.
El Salvador
Honduras
Nicaragua
Guatemala
EIF
Mar 2007
Dom. Rep.
EIF
Jan 2009
Costa
Rica
U.S. Export
Growth
Since EIF
DR-CAFTA: 305%
El Salvador: 1196%
Honduras: 184%
Nicaragua: 593%
Guatemala: 257%
D.R.: 314%
Costa Rica: 763%
Panama: 102%
EIF
October
2011
Panama
22. TPP
⢠NPPC continues to demand elimination of all tariff and non-
tariff barriers
⢠Japan willing to make tough concessions to its so-called
sensitive sectors
⢠Japanâs powerful farm lobby has conceded to structural
reform as part of âAbenomicsâ
⢠Also watching Vietnam and Australia closely
⢠Need TPA to signal Congress and Administrationâs
willingness to conclude negotiations
23. Source: Alexis Taylor, USDA Deputy Under Secretary for Farm and Foreign Agricultural Services
24. TPP Deliverables
⢠Malaysia eliminated all non-tariff barriers ending
its de facto ban on U.S. pork
⢠New Zealand eliminated the most trade distorting
aspects of its non-tariff barriers resulting in U.S.
pork sales at retail
⢠Chile and Peru eliminated their trichinae testing
requirements for chilled U.S. pork
⢠Singapore lifted its ban on the use of PRTs
25. Australia
⢠Australian restrictions are related to porcine reproductive
and respiratory syndrome (PRRS) and postweaning
multisystemic wasting syndrome (PMWS)
â Confirmed PMWS in domestic herd
â Delay risk assessment on PRRS, but watching New
Zealand process closely
⢠Pork Plant Approvals
â Australia limits imports from the United States to only
U.S. facilities that have been approved by Australia.
26. Growth Opportunities:
Vietnam & Malaysia
TPP will provide improved market access to developing markets like
Vietnam and Malaysia, two of Asiaâs most dynamic economies and a
growing market for agri-food products.
Vietnam:
⢠Vietnam has a young and growing population. 43 percent of the
population of 93 million is 25 years old or younger.
⢠Vietnamâs economy is growing rapidly. Since 2007 per capita growth has
doubled.
⢠Since joining the WTO in 2007, U.S. Ag exports to Vietnam have more than
doubled to $2.3 billion.
Malaysia:
⢠Malaysia has a young and growing population. 45 percent of the
population of 30 million is 25 years old or younger.
⢠Demand for U.S. Ag products has risen steeply, increasing 2.5 times over
the last 10 years.
Source: Alexis Taylor, USDA Deputy Under Secretary for Farm and Foreign Agricultural Services
27. Vietnam
Vietnam lifted the white offal ban on Sept. 1st, but with certain conditions
⢠Additional registration, certification requirements for all its trading partners, and limited
to 3 ports of entry
⢠Direct result of NPPC involvement
⢠White offal makes up the majority of U.S. pork exports to Asian countries
Sanitary and non-tariff barriers imposing a de facto ban
⢠Zero tolerance for pathogens
⢠Plant registration
⢠Reference Price
NPPC Efforts
⢠Working with the U.S. apparel industry to ease U.S. textile rules in TPP
⢠USDA Catfish Rule
28. Malaysia
⢠July 2012 banned all export of U.S. pork and pork
products
⢠No equivalence recognition of the U.S. federal
meat inspection. Malaysian government provides
approval for pork imports on an establishment by
establishment basis.
29. Singapore
⢠Impose restrictions on U.S. pork exports based on unscientific
concerns of trichinae transmission
⢠U.S. government working on an exchange of letters with
Singapore to lift mitigation
⢠Impose unscientific shelf life requirements and time requirements
on manufacture date
⢠May also impose unknown pathogen testing
⢠Amended import regulations to allow pathogen reduction
treatments (PRTs)
30. Chile & Peru
⢠Peru recently accepted APHIS proposal to allow
chilled pork from the U.S. into their market; Chile
passed a similar rule in February
⢠NPPC worked closely with U.S., Chilean and
Peruvian officials
31. South Africa
Potential to add $40 million of U.S. pork exports
⢠AGOA renewal legislation moving along with trade bills
⢠Commercial interest, but lack of access
â PRRS, Pseudo rabies, trichinae
â Transport, origin of animals, etc.
⢠Poultry access recently negotiated after a ten year trade
dispute
⢠Negotiations ongoing for pork access
⢠NPPC has been engaged with South African and U.S.
governments and providing scientific resources
32. T-TIP
Removal of all EU barriers will significantly
increase U.S. exports
⢠U.S. cabinet officials stated unequivocally that agriculture
would be part of the negotiations
⢠EU has stated it is unwilling to eliminate tariffs on some
agricultural products: beef, poultry and pork.
⢠U.S. exports more pork to smaller countries like Honduras
than the entire EU
33. Lithuania
⢠FSIS proposed rule to grant equivalency of meat inspection systems
with Lithuania, one of the Eastern European countries with active
African Swine Fever (ASF) outbreaks
⢠If the U.S. contracted ASF it would decimate the pork industry
⢠NPPC Position: APHIS must conduct formal risk assessments of the
ASF outbreaks in Lithuania and its neighboring states before USDA
takes any further steps to facilitate the movement of pork from
Lithuania to the U.S.
⢠Swine Industry specialists traveling to Eastern Europe this June to
assess the situation
34. ⢠China is a potentially enormous market for U.S.
pork
⢠About half of the worldâs pork is consumed in China
⢠Dr. Dermot Hayes estimates that the market for U.S.
pork in China could be well over a million MT.
⢠U.S. pork imports are constrained by:
⢠Ban on the use of ractopamine in imported pork
⢠Discriminatory value added tax (VAT)
⢠Large subsidies to domestic producers
⢠Other restrictive practices
China
35. Argentina
⢠There is currently no export certificate to export to
Argentina.
â U.S. fresh and frozen pork are ineligible for export to Argentina
⢠Argentina has unscientific trichinae mitigation
requirements
⢠Argentinaâs trade relations with all of its partners has
greatly diminished under current President Cristina
FernĂĄndez de Kirchner
36. NPPC Takes No Position on Cuba
⢠Presidentâs Executive Order is limited and does not fully
address the financing issue that currently restricts
agriculture trade
â Must lift embargo completely to solve access problem
⢠Market potential of 11 million consumers, but TPP
represents 805 million people
⢠Key members still object to the presidentâs actions on
Cuba
⢠Recent Congressional Delegations to Cuba included Sen.
Stabenow and Rep. Pelosi
38. Canada Non-ambulatory Pig Export
Certificate Proposal
⢠Canadian plant audit
â Resulted in proposed export requirement updates that include handling of
non-ambulatory, non-injured pigs in packing plants
â Request not supported by science nor outcomes-based equivalency
⢠Estimated cost to U.S. industry to comply, $66 million
⢠NPPC vehemently opposes acquiescing to Canadaâs request and stands
behind current U.S. animal handling procedures
â FSIS Collaboration to Represent Industry Response
â USDA & USTR Engagement
â Canadian Embassy Enrollment
â Canadian Government at Ottawa
â PPIC Member Input
⢠FSIS met with CFIA early February refusing to budge at this time
⢠Conversation continues, no export stoppage to Canada
39. Taiwan
⢠Legislative Yuan passed legislation on beef MRLs on July 25, 2012
â Maintaining all bans on the drug in pork
â Approved an MRL of 10 ppb for beef, the standard adopted for muscle by
Codex in July
⢠The Government of Taiwan has stated it has no intention of lifting ban on
pork
⢠Taiwanese government and business groups making a hard push to set up
entrance to TPP and initiate a Trade and Investment Framework
Agreement (TIFA)
â NPPC has actively worked to stall these engagements until Taiwan lifts ban
on pork imports
40. India
⢠De facto ban on U.S. pork due to Indiaâs Veterinary Certificate
â Ruminant Feeding Ban
â Animal Disease Restrictions
â Veterinary Drug Residues
â Plant Approvals
â Animal Origin
â Processed Pork
⢠New draft certificate currently in the comment period would eliminate
many of the restrictions
⢠Food Safety and Standards Authority of India issued a new draft Order
on Meat and Poultry
â Would maintain the current ruminant feeding ban
â Would impose a prohibition on the use of some antibiotics in animal feed
â Scheduled to go into effect in July 2015
41. T-TIP
Major barriers to U.S. pork exports
⢠Tariff rate quota (TRQ) smaller than Uruguay
Round minimum access
⢠Ban on ractopamine
⢠Trichinae mitigation requirements
⢠Prohibition on pathogen reduction treatments
(PRTs)
⢠Plant approvals
⢠Other issues that arenât currently on the table:
animal welfare, cloning, other technologies