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Tuesday, January 5th 2021. | Sample Templates

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Vietnamese demand for Aussie grain set to continue… Vietnamese demand for Aussie grain set to continue… Written by Peter McMeekin for Grain Brokers Australia on November 22, 2021. Written by Peter McMeekin for Grain Brokers Australia on November 22, 2021. Southeast Asian powerhouse Vietnam announced last week that it had revised its most-favoured-nation (MFN) tariff rates for corn and wheat imported from origins that are not already subject to free trade agreements. The tax on corn will fall from five per cent to two per cent, and the wheat tax will drop from 3 per cent to zero. Southeast Asian powerhouse Vietnam announced last week that it had revised its most-favoured-nation (MFN) tariff rates for corn and wheat imported from origins that are not already subject to free trade agreements. The tax on corn will fall from five per cent to two per cent, and the wheat tax will drop from 3 per cent to zero. The decree, which will reportedly take effect on December 30, was primarily made to support the domestic stockfeed industry, which was hit particularly hard in mid-2021 when the country’s most serious COVID-19 outbreak escalated government control measures. The decree, which will reportedly take effect on December 30, was primarily made to support the domestic stockfeed industry, which was hit particularly hard in mid-2021 when the country’s most serious COVID-19 outbreak escalated government control measures. According to the WTO trade rules, countries cannot normally discriminate between their trading partners. Grant a trading partner a special favour (such as a lower customs duty for one of their products), and the same must be awarded to all other WTO members. This principle is known as the MFN treatment. According to the WTO trade rules, countries cannot normally discriminate between their trading partners. Grant a trading partner a special favour (such as a lower customs duty for one of their products), and the same must be awarded to all other WTO members. This principle is known as the MFN treatment. However, some exceptions are permitted. For example, countries can set up a free trade agreement that applies only to goods traded within the group, discriminating against goods imported from outside. However, some exceptions are permitted. For example, countries can set up a free trade agreement that applies only to goods traded within the group, discriminating against goods imported from outside. The ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) is a trade agreement between Association of Southeast Asian Nations (ASEAN) member states (Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam) and Australia and New Zealand. Under this agreement, Vietnam does not impose import taxes on Australian wheat or barley. The ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) is a trade agreement between Association of Southeast Asian Nations (ASEAN) member states (Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam) and Australia and New Zealand. Under this agreement, Vietnam does not impose import taxes on Australian wheat or barley. The change to the import tax regime will put the United States on a level playing field with its competitors from ASEAN and the Black Sea region. Nonetheless, rising prices and high sea freight rates have rendered US origin wheat uncompetitive into Vietnam for all but some inelastic milling wheat demand. Vietnamese millers prefer soft white wheat (SWW) from the US for its high dissolvability and dark northern spring (DNS) wheat for its gluten strength. The change to the import tax regime will put the United States on a level playing field with its competitors from ASEAN and the Black Sea region. Nonetheless, rising prices and high sea freight rates have rendered US origin wheat uncompetitive into Vietnam for all but some inelastic milling wheat demand. Vietnamese millers prefer soft white wheat (SWW) from the US for its high dissolvability and dark northern spring (DNS) wheat for its gluten strength. Vietnam has experienced rapid expansion and development over the last two decades. Growth in animal-based protein consumption has gone hand-in-hand with this economic development. Vietnam has turned to imports of corn, wheat and barley as stockfeed ingredients to support a 30 per cent increase in meat production since 2010. Pork has traditionally been the meat of choice for the Vietnamese people, but consumption of chicken meat, beef and seafood has increased considerably in recent years. Vietnam has experienced rapid expansion and development over the last two decades. Growth in animal-based protein consumption has gone hand-in-hand with this economic development. Vietnam has turned to imports of corn, wheat and barley as stockfeed ingredients to support a 30 per cent increase in meat production since 2010. Pork has traditionally been the meat of choice for the Vietnamese people, but consumption of chicken meat, beef and seafood has increased considerably in recent years. Vietnam imported more than 500,000 metric tonne of US wheat in the 2020/21 marketing year, second in volume to Australia at 2.37 million metric tonne. Vietnam has imported an average of 4.24MMT of wheat over the last five years, and the USDA has them in for 3.65MMT in the current marketing year. Australia is well positioned to capture the majority of that business again in 2021/22. Vietnam imported more than 500,000 metric tonne of US wheat in the 2020/21 marketing year, second in volume to Australia at 2.37 million metric tonne. Vietnam has imported an average of 4.24MMT of wheat over the last five years, and the USDA has them in for 3.65MMT in the current marketing year. Australia is well positioned to capture the majority of that business again in 2021/22.

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