Benefits of Lower Rice Tariff for Vietnam
Published on: July 2, 2024.
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Reduced Rice Import Duties to Impact Vietnam Traders and International Market
In a move that is expected to have significant implications for the rice trade, the Philippines has recently implemented a reduction in rice import duties. This decision is likely to benefit rice traders in Vietnam and is anticipated to create price pressures in the international market, according to a report by BMI Country Risk & Industry Research, a unit of Fitch Group.
Under Executive Order (EO) 62, the rice import tariff has been decreased from 35 percent to 15 percent. This reduction is expected to result in an increase in the volume of rice imports for the Philippines. As a major player in the global rice market, any changes in the country’s policies and regulations have a significant impact on the overall rice industry.
Traders in Vietnam, a key exporter of rice to the Philippines, are expected to benefit from the reduced import duties. With the lower tariff, it is predicted that more rice will be imported from Vietnam, leading to an increase in trade between the two countries. This development comes at a time when Vietnam is already a leading supplier of rice to the international market, and the reduction in import duties is likely to further solidify its position in the global rice trade.
However, the impact of the reduced import duties is not limited to Vietnam alone. The international rice market is expected to experience price pressures as a result of this change in the Philippines’ rice import policies. With an increase in rice imports, the overall supply of rice in the international market is likely to rise, which can potentially lead to downward pressure on prices. This development presents both opportunities and challenges for rice exporters and traders across the globe, who will need to carefully monitor and adapt to the changing market dynamics.
It is essential for rice exporters, suppliers, and traders to stay informed and updated about these developments to make informed business decisions. To know more about rice exporters and suppliers in Pakistan, visit https://www.hasrice.com.
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