NEDA Board oks draft EO extending lower rice, pork tariffs

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NEDA Board oks draft EO extending lower rice, pork tariffs
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  • The National Economic and Development Authority Board approved a draft executive order extending lower tariffs on rice, pork, corn and coal until 2024
  • The extension ensures ample agricultural supply and price stability, according Socioeconomic Planning Secretary Arsenio Balisacan
  • The proposed order extends EO 10’s reduced most favored nation rates for the commodities for another year
  • The Board also approved a change in coal tariff review from semi-annual to annual
  • Semi-annual reviews have been set for pork, corn, and rice tariff rates

The National Economic and Development Authority (NEDA) Board has approved a proposed executive order (EO) extending reduced tariff rates on pork, rice, corn and coal for another year.

The proposed EO, which was endorsed during the 12th NEDA Board meeting, will extend until December 31, 2024 the reduced most favored nation (MFN) rates on the selected commodities under EO No. 10, signed last year and which also extended the reduced rates until December 2023.

EO 10 set in-quota MFN duty for pork at 15%, and out-quota at 25%. Rice, both in-quota and out-quota, has MFN rates of 35%. Corn carries an in-quota MFN duty of 5% and out-quota at 15%, while coal has a 0% MFN rate.

The NEDA Board also approved modifying the review period for coal tariff rates from semestral to an annual basis. Tariff rates for pork, corn, and rice will continue to be reviewed semesterly.

Socioeconomic Planning Secretary Arsenio Balisacan, in a statement, said the proposed extension of reduced tariffs will help ensure an adequate supply of agricultural commodities and maintain stable and affordable prices, thereby better managing potential inflationary pressures.

“We will also be able to encourage alternative supply to diversify the country’s market sources and establish a forward-looking trade policy that will allow effective and timely response for possible supply and price shocks brought about by major challenges such as the worsening African Swine Fever, or ASF, anticipated impact of the El Niño phenomenon and continuous increases in commodity prices in the world market,” Balisacan said.