EO on tariff deal out next week, Palace says

MANILA, Philippines — Malacañang is expected to come out with a new executive order (EO) “anytime next week” that would embody the deal that the executive department forged with senators on pork import tariff rates.

Socioeconomic Planning Secretary Karl Kendrick Chua on Thursday confirmed that the new EO would raise the minimum access volume (MAV) to 254,000 metric tons (MT) and impose pork tariffs between 10 percent and 25 percent.

Agriculture Secretary William Dar also said that Executive Secretary Salvador Medialdea agreed to have the EO signed by President Rodrigo Duterte “anytime next week.”

Balance

“I think the Filipino people won here,” said Senate President Vicente Sotto III. “Because we were able to strike a balance between the plight of the backyard hog raisers and local producers, and also with the economic managers on the lowering of the inflation rate.”

According to Sotto, Malacañang has agreed to modify the provisions of Executive Order No. 128, which originally lowered the import tariffs from 30 percent to 5 percent.

He said both sides agreed to lower the tariff from 30 percent to 15 percent for pork imported within the quota; for the first three months of effectivity; and 20 percent from the fourth to the 12th month.

The MAV, or import ceiling, will also be increased from 54 million to 254 million kilos, instead of the 404 million proposed by Malacañang, Sotto said.

Sotto said senators agreed to the deal on Duterte’s promise that he would withdraw the EO if pork prices do not go down within a year.

“It will not be contained in the agreement but that was the word of the President. When we raised our objections, he said I can recall it anytime,” he said.

Sotto also said the Senate will vote on an investigation report on the allegations of irregularities surrounding pork importations, illegal issuances of import permits, the purported technical smuggling of a pork import cartel, and the “recycling” of Department of Agriculture officials involved in anomalies.

Recommendations

Sotto said the report would also contain recommendations on the composition of the MAV advisory council, delineation of functions between the Bureau of Animal Industry and the National Meat Inspection Service, and proposed changes to the Tariffs and Customs Code.

Samahang Industriya ng Agrikultura chair Rosendo So said their group was hopeful the revised tariff rates and MAV allocation would translate to lower consumer meat prices.

The price of imported pork, according to Meat Importers and Traders Association president Jesus Cham, might rise because there was no longer time for pork importers to take advantage of the earlier tariff cuts.

“There is practically no more window for importers to avail of the lower tariff for orders made today or last month,” said Jerome Ong, president of CDO Foodsphere Inc. and the Philippine Association of Meat Processors Inc.

“Imports that may be slapped with 5-percent tariff are those ordered from foreign suppliers in February and March, and scheduled for arrival in late April or early May. If such shipments arrive in late May or after the amended EO takes effect, importers will have to pay the higher rate even if they were booked in, say, March or April,” he added.

If economic managers and lawmakers are to be believed, the compromise agreement on pork tariffs and the MAV is expected to give local livestock raisers a bit of leeway to recover from the adverse effects of the African swine fever, while at the same time provide consumers an option to buy cheaper imported pork.