ARLINGTON, VIRGINIA, US – US wheat and corn growers received welcome news on Nov. 16 as the Vietnam government announced it would eliminate its 3% tariff on US wheat imports and reduce its tariff on imported US corn from 5% to 2% by the end of the year.
The decree, which will go into effect on Dec. 30, was praised by US agricultural trade groups.
“US wheat exports to Vietnam’s growing market are much slower so far this year because of short supplies and rising prices, so eliminating this tariff is very important for growers like me,” said Darren Padget, US Wheat Association (USW) chairman and a soft white wheat grower from Grass Valley, Oregon.
Vietnam imported more than 500,000 tonnes of US hard red spring, soft white, hard red winter, and soft red winter wheat valued at $129 million in marketing year 2020-21, second in volume only to Australia.
Vietnam imports an average of about 4 million tonnes of wheat per year.
“With about half of the wheat we produce available for export each year, we depend on increasing access to markets like Vietnam,” said Dave Milligan, North American Wheat Growers president and a wheat farmer from Cass City, Michigan, US. “Here at home, NAWG will continue advocating for trade policies that work toward positive opportunities for wheat growers and their customers.”
The decree comes after US Vice President Kamala Harris visited Hanoi in August. Vietnam had reduced wheat tariffs from 5% to 3% in July 2020.