China to levy higher tariffs on pork imports in 2022 amid supply glut

China will raise import tariffs on most pork products next year, the finance ministry said on Wednesday, 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 Jan 1, from 8 per cent currently, according to a ministry statement.

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.

“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,” 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.

CNA

Tags: frozen pork, pork products, meat prices, hog herd, China, import tariffs