June 2, 2022

 

Pork organisation criticises Philippines' decision to extend lower tariffs on pork imports

 

 

A Philippine government decision to extend the lower tariffs on pork imports until the end of the year will not bring the prices of meat down, and may even push back the recovery of the country's hog industry from African swine fever (ASF),  according to the Pork Producers Federation of the Phils. Inc.

 

"The whole swine industry is saddened by the issuance of the new Executive Order (EO 171) by (Philippine) President (Rodrigo) Duterte extending low tariffs for pork imports," Pork Producers president Rolando Tambago told The STAR. "This will push back recovery efforts of the hog industry as it will definitely affect the sector's confidence to reinvest for increased production output."

 

This sentiment was also echoed by National Federation of Hog Farmers Inc. president Chester Warren Tan who said that the new EO may discourage hog raisers to go into production.

 

EO 171, which was signed by Duterte on May 21, extends the lower tariffs on pork under EO 134, which was signed last year, aimed at bringing down prices and stabilising the supply of pork in the country.

 

EO 134 reduced the most favored nation (MFN) tariff rates for in-quota pork imports or those under the minimum access volume (MAV) to 10% for three months and was increased to 15% in the remaining months. This is lower than the original rate of 30%.

 

In contrast, out quota pork imports were slapped with a 20% tariff for the first three months, which were raised to 25% in the remaining months. This is lower than the original tariff of 40%.

 

Under EO 171, the 15% in-quota and 25% out quota tariff rates for pork will be extended until December 31.

 

"While we understand the need for more affordable pork retail prices for the consumers, the previous EO 134, which was issued in May last year, did not deliver its promise of cheaper pork," Tambago said. "I am confident consumers can expect the same result from this new EO. The government will lose huge potential tax revenue due to tariff cuts without tangible benefits to the consumers."

 

He added: "The government should instead focus on local production, with strategic actionable plans for a sustainable food supply, not import-dependent."

 

For its part, the Philippine Association of Meat Processors Inc. (PAMPI) expressed gratitude to President Duterte for extending the reduced tariffs on pork.

 

"This will enable us to provide affordable prices for our pork-based products to the benefit of the consumers," PAMPI vice president Jerome Ong told The STAR. "We are all still recovering from the impact of the pandemic and face new challenges in the global supply chain, so the president's move is an important step in ensuring food security during these times."

 

- The Philippine Star