Report: US Pork Could Slash Trade Deficit with China

A new analysis shows securing zero-tariff access to China for U.S. pork would be an economic boon for American agriculture. Nick Giordano, National Pork Producers Council global government affairs vice president and council, says the research by Dr. Dermot Hayes, an economist at Iowa State University highlights the opportunity China offers to U.S. pork producers…

“The analysis shows that the Chinese really need pork and that if they direct their purchases our way it’s going to a boon not only for pork producers and the rural economy, but for the United States because pork alone can singlehandedly put a dent in the trade deficit with China.”

The Research by Hayes shows unrestricted pork exports to China would reduce the overall trade deficit with China by nearly six percent and generate 184,000 new U.S. jobs in the next decade. Giordano says unrestricted trade means billions of dollars of exports…

His forecasts always seem to be right on the mark, so he’s got a lot of credibility. And, this analysis shows what we and I think everybody knew, there was tremendous opportunity for us in China, but Hayes’s analysis shows that if we get zero tariff access, after ten years, the U.S. would be shipping almost $25 billion worth of pork annually.”

Pork is a staple of the Chinese diet and a major element of the country’s consumer price index. And, China’s swine herd has been devastated by African swine fever, reducing domestic production by more than 50 percent. NPPC is asking for zero tariffs on U.S. pork for a minimum of five years to help China fill the gap…

“We’re saying get rid of all the tariffs, and that’s really in everyone’s best interest here because the Chinese have a massive protein hole, they’re not going to be able to fill it just by importing pork, they’re going to import other proteins, and they got to manage food price inflation. Pork is a very significant part of the diet in China, and they need large quantities of a safe, affordable, high-quality product.”

Giordano says pork producers need certainty in trade with China…

“it’s great that we’re out from the metals tariffs with Mexico, it’s great that we got the deal with Japan, that’s really important, we we’re starting to lose market share in Japan. That’s two really big notches, but things are still tough for producers. Getting some certainty in China and getting the Chinese to say, yeah, five years zero tariffs, boy, that would just be phenomenal.”

Learn more online at NPPC.org.