U.S. Honey Imports from Vietnam Fall Due to Anti-dumping duties in Q1

Honey

Vietnam

United States

Market & Price Trends

Published Jun 18, 2022

The U.S. is the largest honey-importing country in the world, with the value of annual imports touching over USD 400 million. The country imports large amounts of honey from Vietnam, but during the first quarter of 2022, the amount of honey imported from Vietnam fell by nearly 90%, reaching a ten-year low. One of the primary reasons behind the decline in US honey imports from Vietnam is the impact of preliminary anti-dumping duties which go up to 400%. However, in April 2022, the US Department of Commerce (DOC) made revisions in April 2022 which is likely to have a positive impact on the trade relations in the coming months. The outlook for the Vietnamese honey trade remains shaky as the trickle-down effect of the change in taxation policies is yet to be seen.

The U.S. is the world's largest importer of honey, with annual honey imports touching over USD 419 million. In 2021, the country primarily imported honey from Argentina, Brazil, Vietnam, India, and New Zealand. According to the most recent US International Trade Commission (USITC) statistics, the US imported a total of 31.98 thousand mt of honey in Q1 2022, valued at USD 116.3 million. This is a YoY decline of 32% in volume and down 3% in terms of value compared to the same period of the previous year. In particular, the amount of honey the U.S. imports from Vietnam has plummeted by nearly 90% compared pushing down the import volume to 1,145 mt. This is also the lowest volume that the United States has imported from Vietnam's honey industry for more than 10 years.

Most of the imported Vietnamese honey came in January 2022, with no shipments recorded in the months of February and March. The dramatic decline resulted in Vietnam falling in place from the 2nd largest to the 7th largest honey importer to the U.S. In accordance with this, in the first quarter of 2022, Vietnam's share of total US honey imports fell to 3.6% from its 2021 share of 26%. One of the primary reasons behind the decline in US honey imports from Vietnam is the impact of the announcement the US Department of Commerce (DOC) made at the end of November 2021 that preliminary anti-dumping duties will go up to 400%. On April 8, 2022, however, the DOC issued the final conclusion on the tax rate regarding the anti-dumping investigation (CBPG) of honey imported from Argentina, Brazil, India, and Vietnam.

As a result of this, the anti-dumping tax for Vietnamese firms dropped dramatically, from 410.93%–413.99% to 58.74%–61.27%. In the case of Vietnamese honey, which is taxed at a rate of 58.74%–61.27% in the United States, honey imports from Vietnam are set to continue. According to data from the US International Trade Commission, in recent years, Vietnamese honey exported to the US has been low prices in comparison to other markets. For example, in 2021, the average export price of Vietnam's honey to the US was USD 1,243 per ton, which is 33% lower than that of India and over 100% lower than that of Argentina and Brazil. The outlook for Vietnamese honey trade remains shaky as the trickle-down effect of the change in taxation policies is yet to be reflected on the volume and value of U.S. imports.