Meat Industry INSIGHTS Newsletter

980557 Taiwan to Start U.S. Meat Imports in Late June

June 1, 1998

Taipei - Taiwan's Board of Foreign Trade said on Monday it would review applications for U.S. pork and chicken meat imports soon and expected to issue import permits later this month.

“The framework for U.S. pork and chicken meat imports is ready and importers can apply for import permits between June 9-12,” a board official said.

“We will issue import permits for U.S. meat by the end of June,” she said. “I think June 20-30 is most likely.”

Importers could import U.S. chicken and pork meat immediately once they had received permits, trade board officials said.

Taiwan had planned to start U.S. pork and chicken meat imports from June 1, but differences between the trade board and Council of Agriculture, another cabinet agency, over details of the import framework have delayed the process.

Taiwan's pledge to import U.S. pork and chicken was part of a commitment to the United States to open up several markets as part of a February deal under which Washington agreed to support the island's coveted entry to the World Trade Organization.

Under the agreement, Taipei will allow 5,000 tonnes of U.S. pork imports a year from June, and gradually increase the import volumes to 15,400 tonnes a year in six years.

Taiwan agreed to import 7,500 tonnes of pork variety meats and 10,000 tonnes of chicken meat a year, while reducing its pork import tariffs to 12.5 percent in six years' time from 15 percent.

U.S. producers are eager to enter Taiwan's fast-changing pork market, where consumers eat more pork per person per year than anywhere else on earth.

Taiwan's hog industry is still recovering from a devastating foot-and-mouth epidemic in March 1997 that forced the slaughter of nearly four million hogs and ended once-lucrative exports to Japan and South Korea.

The crisis trimmed Taiwan's hog herd to 11.4 million head from 14.3 million in 1996 and industry experts say the battered market will shrink further after Taiwan opens up to imports.

Council officials have estimated local farmers stand to lose NT$1.7 billion (US$50 million) due to U.S. meat imports.

Taiwan's long-sought WTO entry hinges chiefly on conclusion of bilateral trade pacts with all WTO members that seek such an agreement. Of the 26 states that entered such talks with Taiwan, only the European Union has yet to reach an accord.

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