International trade is a fundamental basis of Taiwan’s success. However, when Taiwanese talk about international trade, they often think of semiconductor and industrial products without understanding the significance of farming products in international trade and politics.
Under such circumstances, those in the opposition camp have been able to act like the “boxers” (義和團) in the Boxer Rebellion at the end of the Qing Dynasty, pushing for a ban on imports of pork from Taiwan’s key ally, the US.
Meanwhile, Vietnam has announced plans to lower its “most favored nation” tariff on imported frozen pork from 15 to 10 percent starting on July 1.
This development demonstrates the importance of the pork trade in US politics. Immediately after Vietnam made the announcement, the US National Pork Producers Council commended it while taking credit for the move, saying that Vietnam had been a priority target of the council’s lobbying.
During the administration of former US president Donald Trump, the US continually questioned Vietnam about exchange rate manipulation, accusing it of creating an export advantage through the depreciation of its currency, and was planning to impose sanctions against the Vietnamese government.
The council spoke up for Vietnam, calling on the Trump administration not to impose sanctions on Vietnam, as it is a major market for US pork.
However, the council then seized the opportunity to take credit and seek rewards from Vietnam, while demanding that the US trade representative pressure Vietnam lower its tariff on imported US pork.
As a result, Trump temporarily suspended US sanctions against the Vietnamese government. Such give-and-take conditions led to Vietnam lowering its tariff on imported US pork.
Vietnam’s demand for pork imports has largely increased due to an outbreak of African swine fever in the country. Even so, it only imported 25,000 tonnes of US pork last year at a value of US$54 million (NT$1.94 million). The amount was insignificant compared with total Vietnamese exports to the US.
Surprisingly, the pork trade alone was able to reverse the Trump administration’s decision to punish the Vietnamese industry. In addition to the political force of the pork producers in the US, the key laid in trade fairness, rather than in value.
Taiwanese seem to believe that the pork trade is not a significant issue, but that is not true.
If Taiwan goes back on its word regarding the terms of trade that have been reached, it would lose its credibility in international trade negotiations.
Not long ago, Lithuania allowed Taiwan to open a newly named “Taiwanese Representative Office in Lithuania,” and Taiwanese were proud of the diplomatic breakthrough.
Yet the US was directing this result behind the scenes.
After the opening of the office on Thursday last week, Lithuania immediately received a loan of US$600 million from the Export-Import Bank of the US. This shows that international trade and politics are related to each other, and that the US is looking after Taiwan’s interests.
How can Taiwanese accuse Washington, their strongest ally, of selling them “toxic” pork containing traces of ractopamine without any scientific proof?
The call for a ban on US pork imports containing the animal feed additive is like a trade sanction. If Taiwan did that, how would it thrive in international trade?
Tommy Lin is director of Wu Fu Eye Clinic and president of the Formosa Republican Association.
Translated by Eddy Chang
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