Chris Nelson, Executive Director/Trustee of the British Chamber of Commerce in the Philippines
MANILA, Philippines – Leaders of groups representing various sectors lauded the recent passage of the Anti-Agricultural Economic Sabotage Law, hailing it as a crucial measure to safeguard consumers and farmers livelihoods from illicit trade and protect the entire Philippine agricultural industry.
British Chamber of Commerce in the Philippines Executive Director/Trustee Chris Nelson stated, “We strongly commend the signing into law of the Anti Agricultural Economic Sabotage Act. This has been one of the Chamber s key priority legislations.
“We expect to see significant growth in the agricultural sector for local producers and legitimate importers,” he added.
“Lubos kaming nagpapasalamat kay Presidente Ferdinand “Bongbong” Marcos Jr. at sa kanyang administrasyon sa walang-sawang pagsulong na maisabatas ang Anti-Agricultural Economic Sabotage Law. Sa pagpapatupad nito, kami ay nabibigyang pag-asa na mayroong sapat na proteksyon ang pagsasaka ng tabako laban sa pagpasok ng iligal na produkto dito sa bansa,” said Philipine Tobacco Growers Association (PTGA) President Saturnino Distor.
(On behalf of the Philippine Tobacco Growers Association, we express our deep gratitude to President Ferdinand “Bongbong” Marcos Jr. and his administration for their relentless efforts to enact the Anti-Agricultural Economic Sabotage Law. With its implementation, we are hopeful that the tobacco industry will receive adequate protection against the influx of illegal products in the country.)
READ: Marcos signs Anti-Agricultural Economic Sabotage Act into law
Antonio Israel, the lead convenor of the anti-smuggling advocacy group EKIS sa Smuggling, said, “We are thankful for the President and the lawmakers who have toiled to pass the Anti-Agricultrual Economic Sabotage Law. We’ve seen the damaging impact of smuggling particularly the proliferation of fake and illegal nicotine products, which not only robs our government of billions of pesos in revenues, but also victimizes legitimate businesses and consumers.”
“With the new law, we have more reason to believe that the fight against illicit cigarette and e-cigarette trade is not a losing battle,” he said.
Signed by the President on September 26, after certifying as a priority measure in 2023, the law introduces harsher penalties for smuggling, hoarding, profiteering, and forming cartels for agricultural and fishery products, including processed and unprocessed tobacco.
In his speech during the ceremonial signing of the law, Marcos said, “The passage of the anti-Agricultural Economic Sabotage Act will set in motion transformative outcomes. It is a proactive measure to prevent the entry of smuggled agricultural products, ensuring that the correct duties and taxes are paid, while imposing higher penalties on violators. This law shapes a stronger more resilient agricultural sector that defends both our farmers and our consumers.”
Representing 50,000 tobacco farmers across the country, the PTGA said this legislative victory is a critical step toward ensuring the sustainability of the sector amid the growing problem of smuggled tobacco in the country.
“Dagok sating mga magsasakang tabako ang patuloy na pagdagsa ng murang iligal na sigarilyo, dahil na rin sa mataas na presyo ng ligal na sigarilyo gawa ng taon-taon na pagtaas ng buwis. Kami ay umaasang ang hakbang ng gobyerno laban sa mga smugglers at iligal na traders ay patuloy na makapag-angat sa estado ng tabakong Pilipino at makaginhawa na rin sating mga magsasaka at kanilang mga pamilya,” Distor added.
(The continuous influx of cheap illegal cigarettes is a blow to our tobacco farmers, especially due to the high prices of legal cigarettes resulting from yearly tax increases. We hope that the government’s efforts against smugglers and illegal traders will continue to uplift the status of Philippine tobacco and provide relief to our farmers and their families.)
Under the law, the smuggling of the tobacco crop and cigarettes worth at least P3 million is classified as an act of economic sabotage, a non-bailable offense.
“Smuggling, hoarding, profiteering and cartel operations involving agricultural and fishery products will now be classified as economic sabotage, a non-bailable offense punishable by life imprisonment and fines up to five times the value of the goods involved. And let me be clear, this law does not just target the masterminds, it holds all accomplices accountable, financiers, brokers, employees, even transporters,” the President said.
Senator Cynthia Villar, chairperson of the Committee on Agriculture, Food, and Agrarian Reform and sponsor of the measure in the Senate, earlier said that this legislation is an act of self-preservation against the manipulative scheme of economic saboteurs. It also intends to “protect our farmers’ livelihood.
The law looks to level the playing field for local farmers by combatting agricultural smuggling and offsetting the continued rise of food prices. It repeals RA 10845 or the original Anti-Agricultural Smuggling Act of 2016.
“It also protects the State from tax evaders and non-payers of duties. This will ensure the well-being of our agricultural producers, consumers, and the whole economy,” she said.
READ: Anti-agri economic sabotage law a ‘turning point’ for PH – Romualdez
House Speaker Ferdinand Martin Romualdez said, “This law marks a critical turning point in our fight to defend the livelihood of Filipino farmers and fisherfolk and secure affordable food for all. With the Anti-Agricultural Economic Sabotage Act in place, we are sending a clear message: there will be no tolerance for those who manipulate the market and jeopardize our food supply,” said Romualdez.
“This would also benefit our farmers and fisherfolk whose livelihood are imperiled by unscrupulous hoarders and smugglers,” Romualdez added.
Senate President Francis “Chiz” Escudero said the legislative measure would send a strong message that the government will use all its resources to hold accountable individuals and groups who engage in smuggling, hoarding, profiteering, and other uncompetitive and exploitative practices in the agriculture sector.
“Farmers, fisherfolk, livestock and poultry raisers, and legitimate traders have long been suffering from the operations of smugglers and other individuals and groups engaged in the manipulation of the market,” Escudero said.
The Bureau of Internal Revenue (BIR) estimates that foregone revenue due to illicit tobacco trade reach up to P100 billion annually.
Data from the National Tobacco Administration showed there are 2.2 million Filipinos who are financially dependent on tobacco including more than 430,000 farmers, farm workers and their family members.