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PORK
The Uruguay Round agriculture agreement will establish disciplines in the areas of market access, export subsidies, internal support, and sanitary and phytosanitary measures. In addition, countries have made a number of commitments that will benefit U.S. agricultural exports. Highlights for the U.S. pork industry, whose 1992 exports totaled $451 million and accounted for 2% of total domestic production, include the following:
Key Developments for U.S. Exports:
EU Cuts Export Subsidies: The European Union will reduce the quantity and budgetary outlay for export subsidies from the base period level. In the year 2000, the EU's maximum allowable quantity of subsidized pork exports will be 389,000 tons, 103,000 tons below the average quantity of subsidized exports in 1986-90.
Japan Reduces Gate Price for Pork: Japan will reduce its gate price to 524 yen/kg, a 29% reduction from the base period.
Korea Establishes Access for Frozen Pork: Korea will establish a quota for frozen pork of 21,930 tons in 1995, 29,240 tons in 1996, and 18,275 tons for the first half of 1997. These imports will be subject to a tariff of 25%. On July 1, 1997 Korea will eliminate all quantitative restrictions on frozen pork imports and replace the quota with a tariff of 33.4% for all frozen pork. This tariff will be reduced in equal annual installments to 25% by the year 2004. The 25% tariff on fresh or chilled pork, which was liberalized on January 1, 1994, will be reduced to 22.5% by 2004. Korea will also reduce the tariff on pork sausage, including hotdogs, to 18% by 2004.
EU Establishes Tariff-Rate Quota: The European Union will establish tariff-rate quotas totaling 75,000 tons, including a 39,000-ton allocation to tenderloins, boneless loins, and boneless hams.
EU Eliminates Duty for Swine Livers: The EU will eliminate its 7% duty for fresh, chilled, and frozen swine livers by the year 2000.
Philippines Increases Access for Pork: The Philippines will open a tariff-rate quota of 32,000 tons, increasing to 54,000 tons by the end of the implementation period in the year 2004. The in-quota tariff will be 30%. Previously, pork faced an import ban in the Philippines.
Thailand Reduces Duty for Pork and Products: Thailand will cut its tariffs on frozen carcasses, most pork cuts, and sausages and similar products from 60% to 30% during the ten-year implementation period. Thailand will reduce its tariffs on fresh and chilled carcasses, and frozen hams and shoulder cuts from 60% to 40%.
EFTA Countries Improve Access for Pork: Austria is providing access for 6,963 tons of pork and pork products, of which 1,000 tons will be a minimum purchase commitment for boneless pork. Most of this commitment is new access, over and above historical import levels. Norway will increase access for pork by 1,381 tons by the year 2000. Finland will increase access for meat and meat products by 12,585 tons by the year 2000.
U.S. Commitments:
Market Access: The United States will reduce its tariff for pork from 2.2 cents/kg to 1.4 cents/kg, a 36% cut, in equal annual installments over 6 years beginning in 1995.
Export Subsidies: The United States will establish quantity and budgetary outlay ceilings for subsidized exports of pork. In the year 2000, the annual allowable quantity of subsidized exports will be 395 tons, the required 21% reduction from the 1986-90 level. The annual allowable budgetary outlay for subsidized exports will be $497,000, the required 36% reduction from the 1986-1990 level.
(Note: This fact sheet is a summary of Uruguay Round highlights; it does not reflect all results.)
June 1994
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