WASHINGTON — Pet Food Institute (PFI) issued a statement on the US Trade Representative’s (USTR) work under the America First Trade Policy Presidential Memorandum and the Reciprocal Trade and Tariffs Presidential Memorandum. In the statement, which was sent to Acting General Counsel of the USTR Juan Millán, PFI discussed several significant trade barriers that impact US pet food exports, including excessive tariffs and taxation in key international markets.

Representing the majority of US pet food manufacturers, PFI analyzed the current state of US pet food trade regarding Brazil, India, the United Kingdom and Argentina, as well as the United States’ key trade partners — Canada, Mexico and China.

US pet food exports to Brazil face an excessively high tariffs and tax structure that significantly increases costs — by more than 50% in some cases — hindering fair market access, according to PFI. The primary barriers include an import tax of 12.6% on the customs value of the product, with the merchant navy fee typically falling around 8% of the freight value. The industrialization tax adds another 6.5% to the customs value, and the ICMS (Value-Added Tax on Sales and Services) is 18%, with the PIS (Program of Social Integration) and COFINS (Contribution for the Financing of Social Security) federal taxes imposing approximately 9.25% combined. 

“This longstanding and complicated tariff structure makes it extremely difficult for US pet food producers to compete fairly in the Brazilian market,” wrote Dana Brooks, president and chief executive officer of PFI, in the statement. “What market exchange exists is imbalanced: Brazil imported $23 million worth of pet food from the US in 2024, while the US exported only $9 million to Brazil. The disparity highlights growth opportunities in US exports to Brazil, provided trade barriers are addressed, and fair market access is ensured.”

PFI highlighted the 18% Goods and Services Tax (GST) imposed by India as another notable barrier to US pet food exports, with the tax significantly raising the cost of US pet food products in India. The association also commented that India’s “inconsistent and unclear” import requirements and “unpredictable” enforcement of its regulations create a massive barrier for US pet food exporters to tackle. 

Brooks added, “The imbalance in trade flows and the lack of regulatory transparency underscore the need for policy adjustments that would allow US pet food manufacturers to better compete in India and increase exports to this key market.”

Further limiting US products’ competitiveness, the United Kingdom imposes a 20% Value Added Tax (VAT) on imported pet food, leading to significantly increased costs of US pet food exports. The results of this barrier haven’t gone unnoticed, with PFI stating that the United Kingdom exported $21 million in pet food to the United States, while US exports to the United Kingdom only totaled $11.4 million in 2024.

These exports also face a significant barrier in Argentina, where they face an import tariff of approximately 22%, limiting exporters’ ability to compete effectively in the market. Similarly to the previous markets discussed, PFI stated that an imbalance in the trade flow exists in Argentina. According to the association, in 2024, Argentina exported $3 million in pet food to the United States, while US exports to Argentina were nonexistent in 2024 and 2023.

According to PFI, unlike these foreign markets, the United States maintains relatively low import duties on pet food, with most products either duty-free or facing tariffs of up to 7.5% of the shipment’s total value. Explaining the important of prioritizing trade with Canada, Mexico and China, PFI explained that the US pet food industry also relies on strong trade relationships with key partners, which account for billions in animal feed imports and exports annually. 

“Ensuring balanced and reciprocal trade policies is essential to maintaining these critical trade flows and fostering a competitive environment for US pet food manufacturers,” Brooks wrote.

As for Brazil, Argentina, India and the United Kingdom, PFI explained that the high tariffs and excessive taxation in these countries create substantial barriers to US pet food exports. 

“These trade restrictions do not align with the principles of reciprocal trade and place US manufacturers at a disadvantage,” Brooks shared. “We respectfully urge the US Trade Representative to address these issues in trade discussions and advocate for reducing or eliminating these barriers to support the competitiveness of US pet food exports.”

Read PFI’s full statement to the USTR here.

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