Australian wheat and frozen pork exports face increased competition in Vietnam in 2022
Wheat
Other Frozen Pork Cuts
Australia
Vietnam
Published Jan 19, 2022
Tridge summary
On 15 November 2021, the Government of Vietnam issued a decree eliminating or reducing tariffs on some agriculture products. Tariffs on corn, wheat and planting seeds were revised on 30 December 2021. Tariffs on frozen pork will be reduced on 1 July 2022. Australia has preferential tariffs to Vietnam through existing trade agreements. By reducing tariffs for other countries, the decree will reduce or eliminate Australia’s tariff advantage.
Original content
Most importantly, Australia’s 3% wheat tariff advantage over the US and Argentina was eliminated on 30 December 2021. The impact of this change on Australian wheat exports will be partially mitigated in the short term. This is due to poor seasonal conditions and high wheat prices in North America. High sea freight costs have also highlighted the importance of proximity to market. Australia has a competitive advantage over North American exporters in Southeast Asia. Australia’s 15% frozen pork tariff advantage over the US and Brazil will be reduced to 10% on 1 July 2022. The impact on Australian pig meat exports will be mitigated by increased global demand for pork. This is due to African Swine Fever in China and other markets. Decree 101/2021 reduces or eliminates Most Favoured Nation (MFN) tariff rates for imports to Vietnam. MFN rates are applied to all World Trade Organization members who do not have separate preferential trade agreements with Vietnam. The US, Argentina and ...
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