Vietnam trade deal could open doors for EU pigs

Pig producers across Europe are expected to benefit from a €47.6bn (£42.7bn) general trade agreement with Vietnam.

The agreement will remove tariffs on nearly all goods on both sides once the deal is finalised by the European Parliament, according to the AHDB.

See also: Cautious optimism among pig farmers after tough nine months

Under the agreement, Vietnam will remove 65% of duties on EU exports with immediate effect, with the rest removed over a 10-year period, said AHDB analyst Felicity Rusk.

EU duties on Vietnamese exports will be eliminated over a seven-year period – a shorter phasing-in period due to Vietnam’s developing country status.

Among the trade barriers, imported pork attracts a 16% tariff on frozen product.

This will be removed over the seven years and could open up a market where demand is already increasing.

Up to April 2019, EU exports of pork and pig offal had increased by nearly 80% on the year, to 29,000t.

Almost two-thirds (64%) of exports are frozen offal products, with frozen pork making up the rest of the shipments, said Ms Rusk.

ASF slashes production

The increase is driven by reduced production in Vietnam which, like neighbouring China, is suffering from a widespread outbreak of African swine fever.

Vietnam has already culled 2.8 million pigs in a bid to contain the disease. That figure equates to about 10% of the nation’s pig herd.

“It is likely the nation will increase its reliance on imports as its domestic pig production continues to suffer,” Ms Rusk said.

However, UK producers will not be able to reap the long-term benefits of the deal as the agreement will only apply to EU member states.

The UK could try to negotiate with Vietnam on its own terms, though this would probably take some time.