August 7, 2023

Potential for Philippines to prolong lower import tariffs on pork and corn

The Philippines may extend reduced import tariffs on certain commodities including pork, corn and rice, beyond 2023 to ease pressure on inflation, which remained above target last month, officials said.

The lowered tariffs are due to expire by the end of 2023.

But supply side challenges, including a potential limit on rice shipments from Vietnam, the country's biggest supplier, and the impact of El Nino dry weather on the local harvest, may warrant keeping tariffs where they are.

"We're reviewing the possible extension," Finance Secretary Benjamin Diokno told reporters.

The "comprehensive" review of tariffs covers commodities that could potentially fuel inflation, said Zeno Abenoja, undersecretary and chief economic counselor at the Department of Finance.

The Philippines' annual headline inflation eased for a sixth straight month in July to 4.7%, still above the official 2%-4% target range, while food inflation fell to 6.3%.

- Reuters