Pork Producers Want End to Chile's Barriers

March 30, 2001

The National Pork Producers Council (NPPC) wants the total elimination of all present tariff and non-tariff barriers to U.S. pork and pork products to be part of any free trade agreement with Chile. "Chile has an efficient, concentrated, and export-oriented pork industry and should not be protected from U.S. competition," said NPPC President Barb Determan, a pork producer from Early, IA "Five companies produce about 95% of the pork there. While competitors like Brazil and Canada have preferential access to Chile's pork market, U.S. producers face the barrier of an 8% tariff and other restrictions. In all of 1999, only six metric tons of U.S. pork reached the Chilean market."

Determan said NPPC believes that under a U.S - Chile Free Trade Agreement, which is being negotiated, tariffs on U.S. pork and pork products should be reduced to zero and Chile should agree to accept pork from any USDA-approved facility. There should also be no tariff-rate-quotas and no phase-in period for obligations.

She praised U.S. Sens. Charles Grassley (R-IA), Max Baucus (D-MT) Richard Lugar (R-IN) and Tom Harkin (D-IA) for drafting a letter to U.S. Trade Representative Robert Zoellick insisting that barriers to U.S. pork exports be a prominent issue in any free trade agreement with Chile. The letter is being circulated for signatures in the Senate.

"Unlike virtually all the countries to which the U.S. exports pork, Chile does not accept pork from all USDA-approved facilities," the letter says. "Rather, like the European Union, Chile insists on sending its own inspectors to U.S. pork plants. This practice is completely unwarranted, given the exceptionally high U.S. food safety standards." Grassley also sent a separate letter to Chilean Ambassador Alejandro Jara expressing deep disappointment over Chile's refusal to accept pork from any USDA approved processing facility and urging the end to Chile's tariffs on U.S. pork.

Determan said the U.S. pork industry is pushing for the total elimination in the shortest possible time frame of all tariffs, all export subsidies and all trade-distorting domestic support for pork and pork products as part of WTO agriculture negotiations. "We view the free trade negotiations with Chile and the Free Trade Agreement of the Americas negotiations as excellent venues to advance this important agricultural initiative," she said.