April 27, 2009

Philippine industry group representing hog farmers has warned that the local industry would collapse if the ASEAN Free Trade Area-Common Effective Preferential Tariffs (AFTA-CEPT) is fully implemented in 2010.

 

However, its counterpart among meat processors is opposing any delay.

 

National Federation of Hog Farmers Inc. president Albert Lim said implementation is in 2010, barely nine months from now and will bring tariffs to zero to five percent, adding that Philippine hog industry cannot possibly compete with countries such as Thailand, whose cost of production is lower.

 

Lim expressed concern that scrapping import tariffs will make importation much more attractive than local procurement.

 

He added that this, in turn, will make hog-raising unprofitable, resulting in a vicious cycle where there would be no local supply, and the country would become dependent on imports, thus making it harder to convince farmers to venture into hog-raising.

 

He said the hog industry had thus called for a five-year delay in the implementation of AFTA-CEPT.

 

However, the Philippine Association of Meat Processors Inc. is against any delays in the AFTA-CEPT implementation.

 

Association president Francisco Buencamino said that some agricultural sectors in the Philippines could actually benefit from tariff-free trade within AFTA.

 

The Department of Agriculture, meanwhile, had expressed support for a delay in the implementation of AFTA-CEPT to avoid disturbing the fragile state of economies while the global financial crisis festers.