PET Food Processing - September 2022 - 24

REGULATORY
" Will US pet food
exports be able
to maintain their
competitiveness in the
global marketplace
and reach new and
developing markets? "
Gina Tumbarello, American Feed Industry Association
peting in a country. These agreements do not require
congressional ratification.
Indo-Pacific region: A missed opportunity
One such " unconventional " framework is the IndoPacific
Economic Framework for Prosperity (IPEF). The
US-led initiative, announced in May, brings together
14 countries (i.e., the United States, Australia, Brunei
Darussalam, Fiji, India, Indonesia, Japan, Republic of
Korea, Malaysia, New Zealand, Philippines, Singapore,
Thailand and Vietnam) under an agreement intended to
" write(sic) the new rules for the 21st century economy. "
This is not a comprehensive trade agreement; in fact, it
is not a trade agreement at all.
The IPEF includes four pillars, focusing on fair and
resilient trade - primarily digital trade, labor and the
environment; supply chain resilience; infrastructure,
clean energy and decarbonization; and tax and anticorruption.
This framework does not include market
access (i.e., tariff reductions) and furthermore, countries
will be able to choose the pillars in which they
wish to participate.
US
China
Thailand
United Kingdom
While Vietnam and Thailand are not currently significant
markets for pet food exports, there is growing
potential for US pet food manufacturers to compete in
these markets. In Vietnam, households owning cats and
dogs grew 19% and 13%, whereas in Thailand, they grew
22% and 17%, respectively, between 2017 and 2021.
However, the Vietnamese and Thai tariff rates on US pet
food imports are 7% and 9%, respectively.
The AFIA, through funding from the Foreign
Agricultural Service's Market Access Program, has been
working to improve the competitiveness of US animal
food products in Vietnam by educating Vietnamese pet
owners about the complete and balanced pet food options
US manufacturers can provide. However, US pet
food stands at a competitive disadvantage in Vietnam
compared to its largest global competitor, the EU, which
has a free trade agreement with Vietnam.
Rising disposable incomes, pet owners making the
switch to prepared pet foods, and a strong movement
within the country to protect companion animals has
led to a huge market opportunity in Vietnam. However,
without support from the Biden administration to reduce
tariffs on US exports, this market will remain just
out of reach.
United Kingdom: A blank slate
Another area that is ripe for discussion is a trade agreement
with the United Kingdom, which separated from
the European Union in 2020. The US International
Trade Commission reported that in 2021, US pet food
exports to the United Kingdom, valued at $10.2 million,
represented only 0.5% of total US pet food exports and
0.12% of the United Kingdom's total pet food imports.
The potential for increased trade and market access
with the United Kingdom is optimistic, which is why
the AFIA supports a negotiated trade agreement that adEXPORTS
OF DOG & CAT FOOD
2021
World Total
Canada
Mexico
Japan
$1.43 billion
$692.86 million
$104.95 million
$91.90 million
$32.81 million
$8.62 million
$6.17 million
$1.73 billion
$832.82 million
$129.16 million
$90.22 million
$112.60 million
$8.98 million
$7.82 million
U.S. Census Bureau Trade Data, USDA FAS, " U.S. Exports of Dog & Cat Food, " YoY change, 2021-2022 (October-June)
2022 % change
20.9%
20.2%
23.1%
(-1.8%)
243.2%
4.2%
26.7%
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