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Philippine Imports of Milling Wheat Surge While Duties Implemented on Turkish Flour
13.07.2020 09:00 "Agro Perspectiva" (Kyiv) —
According to the report of the USDA Grain: World Markets and Trade (July 2020), the Philippines is currently the world’s third largest wheat importer, with demand for wheat flour and milling wheat nearly doubling in the last decade. Its expanding population, coupled with increasing per capita income, has contributed to a surge in consumption of wheat-based products, mainly bread and noodles. The Philippines milling industry purchases nearly all of its milling wheat from the United States for its quality and consistency. While the Philippines imports the vast majority of its milling wheat in the form of wheat grain, it also imports flour (largely from Turkey), which competes directly with the domestic milling industry and indirectly with U.S. wheat. Economic incentives created by Turkey’s Inward Processing Regime have enabled it to become one of the largest exporters of flour globally. In 2011/12, Turkish flour nearly doubled its exports to the Philippines, threatening not only the local milling industry but also U.S. wheat shipments. The surge in Turkish flour imports contributed to reduced U.S. wheat purchases in 2012/13 when shipments fell by nearly 20 percent. Imports of the competitively priced flour continued to grow until 2014/15 when the Philippines Tariff Commission placed anti-dumping duties on Turkish flour for 5 years, resulting in reduced Turkish flour imports year over year. In fact, Philippine imports of milling wheat, mainly supplied by the United States, saw substantial growth as consumption surged through the years.
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