A worker carries a sack of rice on his head inside a government rice warehouse National Food Authority in Quezon City, Metro Manila in Philippines, August 9, 2018. REUTERS/Erik De Castro/Files
MANILA, Philippines — President Ferdinand Marcos Jr. has approved the extension of reduced tariffs on rice, corn, and meat products until the end of December 2024 to keep prices stable amid threats of El Niño in the coming months.
In Executive Order No. 50, Marcos said the lengthened lower import rates are due to the looming negative impact of dry weather on the price and production of rice and corn and the ongoing prevalence of African Swine Fever that restricts meat trade in some exporting countries.
The modified rates first approved in 2021 had already been extended this year due to high inflation, and Marcos said another extension was needed until the end of next year.
The country’s inflation was at 4.1% in November, easing for a second straight month, but has averaged 6.2% in the first 11 months of 2023, which was well outside the Philippine central bank’s 2-4 percent target for the year.
“The present economic condition warrants the continued application of the reduced tariff rates on rice, corn, and meat of swine (fresh, chilled, or frozen) to maintain affordable prices for the purpose of ensuring food security, managing inflationary pressures, help augment the supply of basic agricultural commodities in the country, and diversify the country’s market sources,” the EO states.
READ: EO reducing tariff on key commodities extended until end-December 2024
The Presidential Communications Office said in a statement that “the National Economic and Development Authority (Neda) endorsed the temporary extension of the reduced Most Favored Nation rates” until December 31, 2024.
The tariff rate for rice will remain at 35 percent. In comparison, import levies on corn will stay at 5-15 percent and 15-25 percent for pork products, according to the new presidential directive extending the modified tariff rates.
READ: Marcos extends lower import duty rates on pork, rice, corn, coal
Under Section 1608 of the Republic Act No. 10863, or the Customs Modernization and Tariff Act, the President can increase, reduce, or remove existing import duty rates upon Neda’s recommendation.
EO 50 likewise instructed the Neda committee on tariff and related matters to provide its conclusions and suggestions regarding the semiannual and annual assessment of tariff rates, along with an analysis and monitoring the relevant commodities. — with reports from Reuters