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Importers and traders urge to President Ferdinand Marcos Jr. to issue an executive order that will reduce further cut tariffs on imported pork for the next five years
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The Meat Importers and Traders Association sent its appeal to Marcos via Agriculture Undersecretary Domingo Panganiban two months before the expiry of EO 171, which grants them 15% in-quota and 25% out-quota tariff cuts
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MITA says the conditions surrounding the issuance of EO 134, which granted them the tariff cuts, persist while the industry faces other challenges such as inflation, devaluation and food supply issues
Philippine meat importers and traders are seeking further reduced tariffs for meat imports for five years to help them cope with rising inflation and food security issues.
The Meat Importers and Traders Association (MITA) wrote a letter to President Ferdinand Marcos Jr. urging him to issue an executive order to lower import duty rates on pork to 5% for in-quota and 15% for out-quota shipments. MITA sent its appeal to Marcos through Agriculture Undersecretary Domingo Panganiban.
The petition comes two months before the expiry of EO 171 issued by former President Rodrigo Duterte in May this year. EO 171 superseded EO 134 and extended the 15% in-quota and 25% out-quota tariffs for pork until Dec. 31, 2022 to bring down pork prices and stabilize supply.
EO134 that Duterte issued in May 2021 imposed 10% and 20% respective tariffs on in-quota and out-quota imported pork for three months that increased to 15% and 25% in the remaining months until May 31, 2022. The original rates were 30% for in-quota and 40% out-quota.
MITA said that “since the conditions surrounding the issuance of EO 134 persist, we believe there is no need for DA to petition the Tariff Commission anew.”
The group expressed hopes of meeting with Marcos to discuss “other suggestions and recommendations with regard to availability, affordability, sourcing, retail pricing etc.”
This was issued amid the continuing spread of African swine fever (ASF) and its adverse effects on pork supply at that time.
When EO 171 lapses on December 31, tariffs for pork will revert to 30-40% in January 2023.
“The conditions that warranted the issuance of EO 134 still exist today, and in fact has got worse for the Philippines as well as for the global landscape,” MITA said, adding that the African swine flu continues to plague the domestic swine industry, with no vaccine in sight to treat it.
MITA said that granting a vaccine with high efficacy rate becomes commercially available next year, full recovery of the local hog industry will take at least five years.
The group also cited inflationary headwinds such as rising grain/feed costs, climbing oil/transport costs, devaluation of the Philippine peso and global logistics issues.
MITA also said future pork supply and prices will come under pressure in coming years due to the 1% to 3% reduction in sow numbers in the major pork-producing regions of the world.
“Duty reduction is but one of the solutions we are proposing to help stem inflation,” it said.
The group said other countries have reduced or even eliminated their duties completely, which makes it difficult for local importers to compete for supply overseas. It cited South Korea, where US pork has duty-free access, and Vietnam, whose most-favored trading nation rates for frozen pork have been reduced to 10% from 15%.
