Senate to reconvene next week to address Duterte appeal on EO 128 – Sotto

Robie de Guzman   •   April 21, 2021   •   278

MANILA, Philippines – The Senate Committee of the Whole will reconvene next week in response to President Rodrigo Duterte’s call on lawmakers to give a chance to his order to increase pork imports at lower tariff rates, Senate President Vicente Sotto III said Wednesday.

In a message to reporters, Sotto said the hearing will be held on Tuesday, April 27 to address Duterte’s appeal for lawmakers to consider the intention of his Executive Order 128.

Duterte made the appeal after the Senate Committee of the Whole adopted a resolution calling for the withdrawal of Executive Order 128, which temporarily lowers pork import duties to just 5 percent to 15 percent of the declared shipment value over the next three months.

The order also increases to 350,000 metric tons, from 54,000 metric tons, the total volume of pork that may be imported to the Philippines.

Duterte signed the order in the first week of April in a bid address supply shortage, stabilize prices, and minimize inflation rate due to the African Swine Fever (ASF) outbreak.

Sotto said senators have also agreed to invite Finance Secretary Carlos Dominguez III to the hearing to elaborate on his letter asking Congress to support the executive order.

Dominguez, in a letter addressed to Sotto, said that he and the administration’s economic development cluster made the recommendation to temporarily reduce pork import tariffs and increase the minimum access volume (MAV) on pork imports “after extensive deliberations and consultations among concerned agencies and the public, with all the tradeoffs considered in the cost benefit analysis done on this major consumer concern.”

The DOF chief pointed out in his letter that the period of the tariff adjustment under the EO emphasizes that “this is a short-term effort that does not aim to harm the domestic industry” and is actually “complementary to the programs of the Department of Agriculture (DA) in helping the domestic hog industry to recover.”

Dominguez said that as Chairman of the Cabinet’s Economic Development Cluster (EDC), he was taking full responsibility for supporting and recommending that the President sign Executive Order 128.

Officials from the Department of Agriculture and Department of Justice will also be invited to the hearing, Sotto said.

 

New agreement on pork imports to benefit consumers — Sotto

Marje Pelayo   •   May 7, 2021

MANILA, Philippines – Senators and government economic managers have agreed to propose an amendment to the Executive Order 128 signed by President Rodrigo Duterte, according to Senate President Vicente Sotto III.

Based on what both sides have agreed upon, import tariffs on in-quota on pork will be reduced to 15% provided it is within the minimum access volume (MAV) on the first three months of implementation.

After three months, it will be increased to 20% for the succeeding months.

Meanwhile, the initial recommendation of 400,000 metric tons for minimum access volume (MAV) will be reduced to 254, 000 metric tons.

Sotto believes this will benefit the economy, the local hog raisers and most importantly, the consumers.

“The swine industry has many allied industries like corn, crops, transportation. Kaya hindi porke hindi ka kumakain ng pork ay wala kang kinalaman dito. May kinalaman ka dito kapag tinamaan ka ng inflation na mabigat,” Sotto said.

Meanwhile, the Senate Committee of the Whole will soon release its committee report on the three hearings they conducted.

The reports are expected to contain recommendations on the possible amendments in EO 128 to prevent technical smuggling of pork imports and to clarify the role of the Bureau of Animal Industry (BAI) and the National Meat Inspection Sevice (NMIS) for that matter.

“The committee report will contain the content of the proceedings and what we feel should be legislated or if not, the executive department should work on,” Sotto said.

Sotto added that the Senate should be informed right away once the new EO is released. MNP (with reports from Harlene Delgado)

Duterte EO on lower pork import tariffs to be amended – Sotto

Robie de Guzman   •   May 5, 2021

MANILA, Philippines – President Rodrigo Duterte’s order to allow more pork imports at lower tariffs for a temporary period will be amended after a compromise on the policy was reached, Senate President Vicente Sotto III said Wednesday.

In a message to reporters, Sotto said senators and the administration’s economic managers have agreed to make adjustments on policies concerning pork importation to “strike a balance” between lowering inflation and ensuring the welfare of domestic hog industry.

“We had to strike a balance between accepting a formula in the reduction of inflation and the protection of the local swine industry,” he said.

Sotto did not elaborate on the amendments that both parties have agreed upon, saying he will let Finance Secretary Carlos Dominguez III make the announcement.

“I’ll let Sec. Dominguez announce the figures we accepted after a seesaw of discussion on both MAV and tariff,” he said.

The Executive Order 128 temporarily cuts the tariff rate on pork imports within the minimum access volume (MAV) quota to 5 percent, from the current rate of 30 percent, for the first three months upon the effectivity of the presidential directive. The reduced rate will go up to 10 percent for the next nine months thereafter.

It also increases the MAV quota for pork from 54,210 metric tons (MT) to 404,210 MT.

Dominguez earlier said that Duterte’s order was an “immediate and practicable” response to avoid price spikes.

Duterte also said in his order that the policy seeks to address the existing pork supply shortage, stabilize prices of pork meat, and minimize inflation rates.

But senators argued that this could potentially spell the demise of the local hog industry, and called on the president, through a resolution, to withdraw the order. – RRD (with details from Correspondent Harlene Delgado)

DOF: Temporary reduction of pork import tariffs ‘immediate, practicable’ solution to check inflation

Robie de Guzman   •   April 28, 2021

MANILA, Philippines – President Rodrigo Duterte’s order to allow more pork imports at lower tariffs for a temporary period is an “immediate and practicable” response to avoid price spikes, Department of Finance (DOF) Secretary Carlos Dominguez III said Tuesday.

During the resumption of the Senate Committee of the Whole inquiry into the food crisis resulting from the African Swine Fever (ASF) outbreak, Dominguez said the measure was intended to protect Filipino consumers form price spirals that could further drive up inflation and undermine the country’s economic recovery from the coronavirus disease (COVID-19) pandemic.

The DOF chief noted that the spike in meat prices this year has unduly jacked up food inflation, thus “exacerbating the problems of unemployment, hunger and reduced or lost incomes for many Filipinos” that have led people to rely on community pantries for aid.

Dominguez, a former agriculture secretary, said that although the presidential directive appears to be a painful solution as it would lead to a revenue loss of P13.68 billion for the government, this would actually slash pork prices to a level estimated to save Filipino consumers a whopping P67.38 billion.

“The worse we could do in a situation like the one we are facing today is to let supply issues force food prices up even more. If food prices rise, the inflation rate also increases. If the inflation rate rises, interest rate increases will follow. This unhealthy chain of events will make economic recovery even more difficult for all,” the finance chief told senators.

“The short-term and only practicable strategy for the current problem is contained in Executive Order 128,” he added.

EO 128 temporarily cuts the tariff rate on pork imports within the minimum access volume (MAV) quota to 5 percent, from the current rate of 30 percent, for the first three months upon the effectivity of the presidential directive. The reduced rate will go up to 10 percent for the next nine months thereafter.

It also increases the MAV quota for pork from 54,210 metric tons (MT) to 404,210 MT.

“Again, more than the economics of it, EO 128 is a response to protect our people from shortages and price spikes during this difficult time. We need to do it now for the sake of our countrymen,” Dominguez said.

He also explained that the increase in the MAV quota for pork factors in the estimated supply deficit for 2021 at up to 477,000 MT based on estimates by the National Economic and Development Authority (NEDA).

“Thus, the temporary increase in pork imports will not ‘kill’ the local hog industry as feared by some quarters, given that imports would potentially account for only up to 22.8 percent of total consumption,” Dominguez said.

The Finance chief also emphasized that the decision to adjust pork import tariffs “was not done haphazardly, but underwent extensive deliberations and consultations among the public and concerned agencies, with all the tradeoffs considered in the cost-benefit analysis.”

“We are not giving up on the domestic pork industry. The interventions of the Department of Agriculture to help the industry are aggressive. They expect them to yield even greater benefits once a permanent solution to the ASF outbreak becomes available,” Dominguez said.

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