January 28, 2021

Philippines seeks to cut tariffs and increase pork imports quota

Philippines President Rodrigo Duterte's economic team is seeking to permanently cut tariffs and increase pork import quotas to address inflation fears in the country, The Philippine Star reported.

Bruce Tolentino, a member of the Monetary Board, said in a webinar that they are discussing the issue of pork imports, as the meat was a major contributor to high inflation last year.

Tolentino said they discussed implementing permanent policies about reducing tariffs on pork and increasing the minimum access volume (MAV) to the meat.

Last year, President Duterte issued and executive order to increase the MAV for pork imports to 254,210 metric tonnes from 54,210 metric tonnes prior to boost local supply and stabilise retail prices for the meat.

Another executive order was issued to cut pork tariffs from 30% to 5% within the MAV, and from 40% to 15% outside the MAV.

Both executive orders have expired, and the economic team had wanted an extension.

Tolentino said a 15% tariff is high when compared to other countries and still provides enough buffer to protect local suppliers.

He said Filipinos pay nearly two times more for meat compared to Thais, and 30% higher compared to Vietnamese consumers.

For the policies to be made permanent, it will need to pass legislation or announced as an executive order.

-      The Philippine Star