Frustration for UK pork sector as US 'Airbus' tariffs remain

The National Pig Association (NPA) says the tariffs are 'damaging' for the UK pork industry at a time when it is seeking to grow global trade
The National Pig Association (NPA) says the tariffs are 'damaging' for the UK pork industry at a time when it is seeking to grow global trade

British pig producers have highlighted their disappointment as 'damaging' US Airbus tariffs are set to remain for the time being.

Liz Truss received a reminder of the challenge she faces in securing a US trade deal after she sought relief in the Airbus-Boeing dispute.

Both the United States and EU claim that each others aeroplane manufacturer is unfairly subsidised.

But the International Trade Secretary didn’t achieve much beyond the removal of tariffs on sweet biscuits.

UK pork exporters have faced damaging tariffs of 25% on US pork exports since October 2019 when the WTO authorised the US to impose tariffs of up to 100% on $7.5bn worth of EU products.

The tariffs were approved as retaliatory measures against the EU as part of the ongoing 15-year legal battle at the WTO over Airbus/Boeing subsidies.

The National Pig Association (NPA) says the tariffs are 'damaging' for the UK pork industry at a time when it is seeking to grow global trade.

US law requires the US Trade Representative (USTR) to review the tariffs after four months and then every six months.

The latest revisions, which will come into force on September 1, were minimal.

The 25% tariff currently applied to pork products remains alongside the same rate on certain cheeses, butter and Scotch Whisky.

After her visit to Washington to meet US Trade Representative Robert Lighthizer, Ms Truss welcomed the decision to lift tariffs on shortbread.

The 25% US tariff currently applied on exports of sweet biscuits, including shortbread, will be removed for the UK.

But she expressed disappointment that the announcement does not address tariffs on goods like single malt Scotch whisky.

“These tariffs damage industry and livelihoods on both sides of the Atlantic and are in nobody’s interests. I am therefore stepping up talks with the US to remove them as soon as possible,” she said.

NPA chief executive Zoe Davies said it was 'disappointing' that the tariffs, which affect producers' ability to compete, remain.

“While the US market is not big, it is valuable as the products supplied by some of our major processors tend to be ‘high end’," she said.

“The situation must be resolved if there is to be a US-UK trade deal, particularly as it appears the UK won’t benefit from the balancing Boeing ruling, giving us a weaker negotiating position.”