Govt okays rice tariff cut, pork tariff hike

PRESIDENT Rodrigo Duterte has approved the recommendation of the National Economic and Development Authority (NEDA) to temporarily reduce tariff rates on imported rice and to further modify tariff rates on imported pork

products, Malacañang announced on Saturday.

In a statement, the Palace said Duterte has given the green light to proceed with the proposed adjustment on the most favored nation (MFN) tariff rates for both in-quota and out-quota imports for rice and pork “to further support efforts in ensuring food security and protect consumers.”

Under Executive Order (EO) 135, the MFN tariff rates for rice “were reduced to 35 percent from 40 percent (in-quota) and 50 percent (out-quota) for a period of one year in order to diversify the country’s market sources, augment rice supply, maintain prices affordable, and reduce pressures on inflation,” the Palace said.

“The tariff reduction took into consideration the increase in global rice prices, and the uncertainties surrounding the steady supply of rice in the country,” it added.

Meanwhile, the Palace said through EO 134, the MFN tariff rates for pork products were further modified “in recognition of the plight of all concerned sectors and stakeholders, including the local hog industry.”

To recall, EO 128 temporarily reduced the tariff rates for pork meat for a period one year at a graduated basis, from 30 percent (in-quota) and 40 percent (outquota) to 5 percent (in-quota) and 15 percent (out-quota) for the first three months, and 10 percent (inquota) and 20 percent (out-quota) from the fourth to the 12th month.

With the issuance of EO 134, the reduced tariff rates under EO 128 “will be increased to 10 percent (in-quota) and 20 percent (outquota) for the first three months, and 15 percent (in-quota) and 25 percent (out-quota) from the fourth to the 12th month,” the Palace said.

“Given the continuing spread of African swine fever (ASF) and its adverse effects, the adjusted tariff rates aim to strike a balance between the objective of making pork products available and affordable, and the concerns of all stakeholders especially the recovery of the local hog industry,” it added.

The Department of Agriculture (DA) has recommended reducing tariff rates for both in-quota and out-quota imports of rice and pork — a move that some traders described as a strategy to secure sufficient stocks as international prices are expected to rise amid tight supply.

It was on April 7, when the President signed the executive order, which temporarily lowers tariff rates on fresh, chilled, or frozen pork meat “to address the existing pork supply shortage, stabilize prices of pork meat, and minimize inflation rates.”

In addition to lowering pork import tariffs, Duterte on Monday approved the DA recommendation to increase the minimum access volume for pork imports to 254,210 metric tons (MT) from the previous 54,210 MT.

The President also signed Proclamation 1143 declaring a “state of calamity” throughout the country for one year due to the ASF outbreak.

The ASF outbreak has been responsible for the significant reduction in the country’s swine population by around 3 million hogs, resulting in more than P100 billion in losses to the local hog sector and allied industries, and leading to increased retail prices of pork products.

Aside from increasing pork imports, the government is embarking on a massive pig repopulation program to boost domestic meat supply.