‘TAMING’ INFLATION

The Economic Development Cluster of President Rodrigo R. Duterte’s cabinet has drafted an executive order to address inflation

The administration’s economic managers have drafted an executive order (EO) aimed at taming the soaring prices of commodities, Malacañang said on Wednesday, September 12.

During a Cabinet meeting on Monday, September 10, economic managers submitted to Duterte some proposals that would address inflation, which hit 6.4 percent in August 2018.

Among the economic team’s proposals is the signing of an EO eliminating “administrative constraints and non-tariff barriers” on some goods, Presidential Spokesperson Harry Roque Jr. said.

Non-tariff barriers are restrictions to imports or exports through means other than the imposition of tariffs. These take the form of import quotas, import permits, sanitary and phytosanitary measures, and product standards, among others.

“The economic cluster group will submit to the Office of the President a draft executive order removing administrative constraints and non-tariff barriers on importation of fish, rice, sugar, meat, and vegetables,” Roque told Palace reporters.

“’Yung [proposed] EO has [something] to do with non-tariff barriers at saka ‘yung non-tariff impediments. Pero ‘yung mga ibang hakbang po, ginagawa na natin,” he added.

On September 7, Duterte blamed the tariffs slapped by the United States on some goods for the accelerating inflation in the Philippines.

In a separate press briefing, Trade Undesecretary Ruth Castelo said the surge in prices was driven by the “trading scheme” between production and retail.

“Kapag nalaman kasi natin ‘yung trading sources, most of the time, it’s not the market vendors [who] are at fault, kasi ‘yung kuha nila doon sa trader nila or ‘yung supplier nila [ay] already above the reasonable price,” she said.

“Hindi naman natin pwedeng pigilan ang market vendors na maglagay ng kita nila. So doon ‘yung nakita nating problema. And that’s what we’re doing our best to source or to look out for,” the Trade official added.

Castelo said manufacturers of basic necessities and prime commodities agreed to hold off price hikes in the next three months.

The three-month price freeze covers canned sardines, canned meat, instant noodles, all kinds of milk, coffee, bottled waters, candles, detergents, bath soaps, and all other basic necessities, she said.

“’Yung [proposed] EO has [something] to do with non-tariff barriers at saka ‘yung non-tariff impediments. Pero ‘yung mga ibang hakbang po, ginagawa na natin.” Presidential Spokesperson HARRY ROQUE JR.