Senators urge Duterte to reconsider, recall order reducing tariff on pork imports

Senators on Monday called on President Rodrigo Duterte to reconsider and recall the executive order (EO) reducing the tariff rates for imported pork meat.

In his opening speech during the Senate committee of the whole hearing on the food security crisis, Senator Panfilo Lacson pointed out that the EO will only further burden local hog raisers who are already negatively impacted by the outbreak of African swine fever (ASF).

"On behalf of the hog raisers, we urgently appeal to the President to reconsider and recall such executive order," Lacson said.

Under EO 128, the tariff rate for  imported pork meat within quota or minimum access volume (MAV)—whether fresh, chilled or frozen—will be pegged at 5% for the first three months upon the EO’s effectivity and 10% for the fourth to 12 months.

The tariff rate for imported meat outside of the MAV, however, has been set to 15% for the first three months upon the EO’s effectivity and 20% for the fourth to the 12th months.

The existing 30% to 40% tariff rate for imported pork will be restored after the 12th month.

“There is an urgent need to temporarily reduce the most favored nation tariff rates on fresh, chilled or frozen meat of swine to address pork supply shortage, stabilize prices of pork meat and minimize inflation rates,” the EO read.

But citing data from the Philippine Statistics Authority, Lacson said that the average nationwide consumption of pork products from 2018 and 2020 is at 1.85 million metric tons.

Still, he said that during the same period, the average annual local production of pork is at 2.25 million metric tons.

"So where is the shortage? Hindi ba malinaw na higit pa sa sapat ang supply mula sa local na produksyon upang matugunan ang pangangailangan ng ating bansa?" he said.

(So where is the shortage? Isn't it clear that supply from the local production is more than enough to meet the needs of the country?)

"Ito ay sa kabila ng umiiral na ASF na nagsimulang makapasok sa ating bansa noon pa mang Agosto 2019 na siya nilang ginamit na pangunahing dahilan sa pagkumbinse kay Presidente Duterte upang pirmahan ang nasabing EO," he added.

(This is despite the ASF outbreak which began in August 2018 which was used as the reason to convince the President to sign the said EO.)

In addition, Lacson mentioned data from the Bureau of Customs (BOC) that the country imported more than 265,000 metric tons of pork products in 2018, 250,000 metric tons in 2019, and 76,000 metric tons in 2020.

This, he said, only means that there is no need to import more pork products, since government data show that the local production of pork is already more than sufficient by 403,000 metric tons to address the shortage of pork supply.

Lacson also pointed out that the World Trade Organization does not require countries to import quotas.

"So can we conclude that it is only because of the penchant and whim of the DA to import that made them do it?" he said.

"When there is surplus in the local supply of pork in relation to the local demand, why are we importing?" he added.

Lacson warned that the Philippines may lose P3.6 billion in tariff revenues due to the EO. He added that in simulations of the BOC, this could even increase to P5.4 million in just within six months.

Senator Joel Villanueva also backed the call to reconsider EO 128 as he asked the Department of Agriculture to come up with alternative solutions to help local hog raisers.

"Ang gusto po nating itanong sa Department of Agriculture: Ano po ang farm-level solutions n’yo? Ano po ang farmgate interventions n'yo maliban sa pag-alis ng tariff walls?" he said.

(What we want to ask the Department of Agriculture: What are your farm-level solutions? What farmgate interventions will be implemented aside from lifting the tariff walls?)

"Hindi po ba nararapat lang na dito magbuhos ng tulong ang gobyerno para makapag-repopulate sila sa halip na itulak silang magtiklop ng negosyo?" he added.

(Isn't it proper for the government to implement assistance programs to allow for the repopulation of hogs instead of forcing hog raisers to close shop?)

For her part, Senator Cynthia Villar, chair of the Senate agriculture panel, also said there is no need to reduce the tariff rates on pork products as "majority of the imports are offal with 5% to 10% tariff."

"In addition, there is no need to increase minimum access volume (MAV) because the good meat under MAV and outside MAV which was 30 to 40% tariff is only 30% of the sinasabi nilang short ng local production," she added.

The investigation on the food security crisis stemmed from the information received by Lacson from "high-placed" sources alleging that there is "tongpats" or padded costs of P5 to P7 per kilo of pork import prevailing at the current importation setup.

He said the padded costs may significantly increase if the tariffs on pork imports are reduced and the MAV allocation is increased.

Agriculture Secretary William Dar has already ordered an investigation into the allegations of Lacson on "tongpats."—AOL, GMA News