Duterte order lowering pork tariffs to result in 'double dead' PH hog industry, gov't revenues -- Lacson


Senator Panfilo Lacson on Monday, April 12, urged President Duterte to reconsider his executive order (EO) lowering the duties for imported pork products, saying such directive is "beating to death" the "already dying" local hog industry as well as government revenues.

Sen. Panfilo Lacson
(Joseph Vidal / Senate PRIB / FILE PHOTO)

"Botcha o double-dead ang epekto ng EO 128. Bakit? Patay ang lokal na industriya ng baboy, patay din ang koleksyon ng taripa ng gobyerno (EO No. 128 will have a 'botcha' or double-dead effect. Why? It kills the local hog industry, it also kills the government's tariff collections)," Lacson said as the Senate Committee of the Whole began its inquiry into the country's food crisis due to the African swine fever (ASF) and the alleged irregularities in pork importation.

"I could not think of an act more cruel than beating to death somebody who is already dying," he lamented.

"On behalf of the hog raisers, we urgently appeal to the President to reconsider and recall such executive order," Lacson appealed.

EO No. 128, signed by Duterte last April 7, lowers the current import duties within and outside the minimum access volume (MAV) from 30 percent to five percent and 40 percent to 15 percent, respectively, within the first three months of its one-year effectivity.

On the fourth to 12th month, the tariff will be raised to 10 percent and 20 percent, respectively.

Duterte also supported the Department of Agricuture's (DA) proposal to raise the MAV of pork imports by 350,000 metric tons (MT), from the current MAV of 54,210 MT.

In calling for the recall of the order, Lacson questioned the DA's justification to open up importation as a solution to the impacts of ASF.

He argued that the country's pork supply has been enough in the recent years to meet the Filipinos' demand, even during the ASF outbreak in 2019.

Presenting data from the Philippine Statistics Authority (PSA), Lacson said the Philippines' average annual consumption of pork from 2018 to 2020 stood at 1.85 million MT while average local pork production was 2.25 million MT.

Comparing it with figures from the Bureau of Customs (BOC), he noted a pork surplus of 429,794 MT in 2018; 416,651 MT in 2019, and 362,647 MT in 2020. And the country still imported 265,834 MT in 2018, 250,319 MT in 2019, and 76,109 MT in 2020.

"Lumalabas na hindi nga kailangang mag-angkat kahit isang kilo…dahil sa ang officials records ng gobyerno mismo ang nagsasabing sobra-sobra ang lokal na produksyon ng baboy (It appears that we do not need to import even a single kilo because based on official records from the government state that local pork production is more than enough)," Lacson said.

"Don’t they realize that such inconsiderate course of action has far-reaching implications on our country’s food security and even on our national security?" he pointed out.

Citing forecasts from the BOC, Lacson warned that the Philippines stands to lose P3.6 billion in potential revenues from pork import duties, which can increase to P5.4 billion within nine months, if the government pushes through with the reduction of tariffs.

"So, can we conclude that it is only because of the penchant and whim of the Department of Agriculture to import that made them do it? Maybe the bigger question is why? Or, magkano (how much)?" Lacson said.

"This is not by any language mercy killing, Mr. President. Rather, it is ‘merciless killing’," he reiterated.

Lacson had alleged that there are anomalies in the importation of pork, specifically, that there is a padded cost of P5 to P7 per kilogram of pork that would go to the pockets of unscrupulous officials.