Vietnam reduces wheat, ag product tariffs

U.S. Wheat Associates reported the Government of Vietnam recently revised Most Favored Nation tariff rates on several imported agricultural products, including wheat. This decision reduces Vietnam's tariff on imported U.S. wheat (excluding durum) from 5% to 3% and will take effect July 10.

The reduced tariff is welcome news to U.S. wheat producers, reports U.S. Wheat Associates, in part because it helps make U.S. wheat more competitive in Vietnam's growing wheat market. There is, however, more work to be done because Vietnam pays no tariffs at all on most of their imports as a result of a series of preferential trade agreements such as the Comprehensive and Progressive Trans-Pacific Partnership, of which the United States is not a member.

Elimination of tariffs on U.S. wheat would benefit the growing Vietnamese milling industry and its customers, states the report. Despite the tariffs, their imports of U.S. hard red winter, soft white and hard red winter wheat imports reached a market share of almost 13 percent in marketing year 2019/20, the largest level in five years. Vietnam currently imports an average of more than 2 million metric tons per year.