Duterte approves temporary lower pork tariffs
President Duterte has signed an executive order temporarily lowering the import duty on pork products to augment meat supply and stabilize prices in the country.Â
The President's decision on lower tariff rates came days after asking Congress to increase the minimum access volume (MAV) for pork imports this year by 350,000 metric tons.
Under EO No. 128, the President approved the reduction of import tariff for fresh, chilled or frozen pork to 5 percent from 30 percent under the MAV quota for three months. The rate will be increased to 10 percent in the next nine months. After a year, it will return to the 30 percent tariff rate.
For pork imports beyond the quota, the tariff rate will be cut to 15 percent from 40 percent for the first three months. It will be raised to 20 percent in the next nine months. It will be back to 40 percent after a year.
"There is an urgent need to temporarily reduce the Most Favored Nation (MFN) tariff rates on fresh, chilled or frozen meat of swine to address the existing pork supply shortage, stabilize prices of pork meat, and minimize inflation rates," the order read.
The President recognized that it would take time for the domestic swine industry to fully recover and attain sufficient local pork production. The African Swine Fever (ASF) made "damaging effects" to the local hog industry that led to the soaring prices and plummeting pork supply.
"The government recognizes the need to immediately address the current shortage in swine meat, and endeavors to strengthen food supply to ensure that Filipinos have equitable access to food, particularly meat," the order read.
The EO on the temporary reduction of pork tariffs, signed by the President on April 7, will take effect immediately after publication in the Official Gazette or a newspaper. It will be effective for a period of one year.
The latest decision was made upon the recommendation of the National Economic and Development Authority (NEDA) board last March 11.
Last March 26, the President endorsed the increase in the cap on pork imports purchased under lower tariffs to address the supply shortage. The proposed increase of 350,000 metric tons will be in addition to the current MAV of 54,210 metric tons for the year 2021, according to Presidential spokesman Harry Roque.