First load of tariff-free U.S. wheat arrives in Vietnam

ARLINGTON, Va. — Following productive talks with america final yr, the Vietnamese authorities eradicated a 3 p.c U.S. wheat import tariff on Dec. 30, 2021. On Feb. 6, 2022, the primary cargo of U.S. wheat bought with no tariff arrived at port in Ho Chi Minh Metropolis carrying greater than 68,350 metric tons of sentimental white and exhausting purple spring wheat grown within the Pacific Northwest and Northern Plains.

“With the import tariff lowered to zero, the Vietnamese purchaser saved virtually $1 million on this vessel load of U.S. wheat alone,” stated Robert Hanson, agricultural counselor, USDA International Agricultural Service, Hanoi. “We thank the Vietnam authorities for ending the tariff, a choice that may maintain the road on meals prices and assist make U.S. wheat extra aggressive in Vietnam’s rising market.”

“The International Agricultural Service labored exhausting to chop this barrier and stage the enjoying subject for U.S. wheat in Vietnam,” stated Vince Peterson, president, U.S. Wheat Associates (USW). “Vietnam first lowered the U.S. wheat import tariff from 5 p.c to three p.c in July 2020. The talks continued till Vietnam revealed the ultimate decree, and USDA and U.S. Commerce Consultant Katherine Tai introduced in November 2021 that the tariff could be eradicated.”

Vietnam imports a median of about 4 million metric tons of wheat per yr. Australia and Canada are giant wheat suppliers to Vietnam and had loved duty-free entry to Vietnam for a few years beneath regional commerce agreements.

Nonetheless, even with the utilized U.S. wheat import tariff, Vietnamese millers doubled U.S. import quantity to greater than 520,000 metric tons between 2015 and 2021. Along with comfortable white and exhausting purple spring wheat, Vietnam imported U.S. exhausting purple winter and comfortable purple winter wheat in 2021. That returned about $130 million to U.S. farmers and the wheat provide trade.

“Eliminating the U.S. wheat import tariff got here on the proper time for Vietnam given the run up in U.S. and world wheat costs,” stated Peterson. “We are going to preserve serving to Vietnamese clients acquire extra worth with the U.S. wheat provides wanted to fulfill the rising demand there for higher high quality wheat meals.”

U.S. Wheat Associates’ (USW) mission is to “develop, preserve, and increase worldwide markets to boost wheat’s profitability for U.S. wheat producers and its worth for his or her clients.” USW actions in additional than 100 nations are made attainable by producer checkoff {dollars} managed by 17 state wheat commissions and cost-share funding offered by USDA’s International Agricultural Service. USW maintains 15 places of work strategically situated world wide to assist wheat patrons, millers, bakers, wheat meals processors and authorities officers perceive the standard, worth and reliability of all six U.S. wheat lessons. For extra info, go to http://www.uswheat.org.