The National Economic and Development Authority (NEDA) has given assurance that the decision of President Duterte to increase the volume of imported pork and decrease tariff rates will not kill the local hog industry, but instead ensure adequate and affordable food supply and prevent higher malnutrition and poverty.
During the continuation of the Senate committee of the whole’s hybrid inquiry yesterday on the food security crisis brought about by the outbreak of African Swine Fever (ASF) in the country, NEDA acting Secretary Karl Kendrick Chua said Duterte’s Executive Order 128 is meant to help fill the deficit, reduce food prices and ensure the adequacy of food supply.
Chua said the Department of Agriculture’s proposal to increase the minimum access volume (MAV) for pork from 54,000 to around 404,000 metric tons is consistent with the supply deficit estimated by NEDA.
He believes that contrary to industry concerns, the proposed importation of 404,000 metric tons of pork will only gradually enter the country and as needed.
“The tariff rate for pork also needs to be low enough to help reduce and stabilize the retail price. Before the spike in pork price, the normal price of lean pork was around P224 per kilo. If we want retail prices to revert to this level, we also need to lower the tariff rate to complement the increase in MAV for a temporary period,” he explained.
“We need to help domestic producers recover from ASF. We also need to help 95 million consumers of pork… and increasing the MAV temporarily to help fill the deficit, reduce food prices, and ensure our food supply is adequate and affordable so that we can prevent higher malnutrition and poverty,” Chua mentioned.
The Senate committee of the whole adopted the resolution urging Duterte to withdraw EO 128, which provides for the temporary modification of the rates of import duty for fresh, chilled or frozen meat of swine and to recall the recommendation to increase the MAV of pork.
“Upon your direction Mr. Senate President, as chairman of the committee, we can now present a motion to adopt a resolution urging the President to withdraw EO 128… and recall the order to increase the MAV… if nothing changes until May 17, then we will take a more affirmative action of withdrawing the authority of the President of setting the tariff rates,” said Drilon.
The committee asserted that “the power to fix tariff rates and import quotas falls within the realm of the power of taxation, a power which is within the sole province of the legislature under the Constitution.”
The resolution was co-authored by Sotto, Senate President Pro-Tempore Ralph Recto, Majority Leader Miguel Zubiri, Senators Sonny Angara, Nancy Binay, Pia Cayetano, Leila de Lima, Richard Gordon, Risa Hontiveros, Lito Lapid, Panfilo Lacson, Imee Marcos, Manny Pacquiao, Francis Pangilinan, Grace Poe, Ramon Revilla, Joel Villanueva and Cynthia Villar.
Duterte issued EO 128 last April 7 reducing the in-quota tariff rate from 30 percent to five percent for the first three months and 10 percent for the 4th to 12th months and reducing the out-quota tariff rate from 40 percent to 15 for the first three months, and 20 percent for the 4th to 12th months.
Last March 26, when Congress was no longer in session, the President also sent Congress a letter to convey his proposal to increase the MAV to 350,000 metric tons from 54,210 MT.
Photo Sources: marketwatch.com, vir.com.vn, thepigsite.com
