The House Committee on Ways and Means does not support the Department of Agriculture’s bid to reduce tariffs on pork and to solve domestic supply problems through tariff revenues from pork imports, noting that the benefits for consumers is a meager P0.50 centavos.
“We’ve run the numbers, and our findings are that, at the levels the DA is trying to propose for importation, the tariff reduction will only impact average consumer pork prices by 50 centavos. This is not worth the pain it will cause farmers, and it is certainly not worth the trouble of more inspections,” said committee chairman and Albay Rep. Joey Sarte Salceda on Monday, March 8.
“Even with the current pork tariffs of 40%, the imported price will be around P187 per kilo. Considering that pork has reached up to P400 per kilo in some markets, there is no logic for a tariff reduction. Even at a tariff rate of 100%, there would still be an incentive to import,” Salceda said.
He added: “The more sensible approach is to fix our Sanitary and Phytosanitary Import Clearance (SPSIC) system, our imports inspection and quarantine system, and to streamline imports processing.”
Salceda presided over a committee hearing on Monday in connection with the congressional inquiry into alleged rampant smuggling of agricultural products into the country.
Agriculture Secretary William Dar said smuggling activities should end as these “silently snuff the life out of the livelihood of farmers and agricultural workers.”
Dar disclosed that a Compliance and Regulatory Enforcement for Security and Trade Office has been established to help address the problem.
In statistics presented by DA to the House panel, it was revealed that pork is not among the top imports of the country in 2019.
Dar has recommended pork importation as one of the proposed solution that would address the surge in pork prices resulting from shortage.
A tariff reduction for imported pork has also been proposed
However, Salceda warned that a tariff reduction when global prices are already much lower than domestic prices merely “pads the profits of big businessmen.”
“Only the big supermarkets and importers will benefit from a tariff reduction. They will already make very big money at current tariff price,” Salceda added.
“My proposal is this: Let’s allow more importation at current tariff rates. Whatever is in excess of what we usually import, let’s use the tariff revenues as an RCEF for the swine industry. That could reach P14 billion more in tariff revenues if we import all of our shortfall,” Salceda proposed.
“That addresses the heart of the matter, which is domestic pork supply.”
Salceda warned that an unnecessary tariff reduction could hurt the domestic swine industry, of which 71% is backyard production.