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Manila Bulletin devider Philippines devider National devider DOF defends Duterte's decision to reduce tariff rate, increase volume of pork imports

DOF defends Duterte's decision to reduce tariff rate, increase volume of pork imports

Published Apr 27, 2021 01:04 pm

Finance Secretary Carlos Dominguez on Tuesday, April 27, defended their recommendation to President Duterte to sign Executive Order 128, which reduces tariff on the importation of pork products.

(MANILA BULLETIN File photo/Keith Bacongco)

In a virtual presence during a public hearing by the Senate Committee of the Whole presided by Senate President Vicente C. Sotto III, Dominguez said a reduction of tariff rates is needed to allow the entry of more pork to fill up shortages of pork in the local market and to stabilize the price of pork which is too high. Dominguez heads the economic cluster of the Duterte Cabinet, which recommended the lowering of the pork tariffs contained in EO 128.

The downward adjustment in tariff rates on pork was not done haphazardly, Dominguez assured senators.

Dominguez said supply of pork in the local market was caused by African Swine Fever (ASF) that hit the swine industry and consequently triggered inflation.

He explained that high inflation pushed interest rates such as loans from banks and credit cards.

Dominguez also maintained that the decision to lower tariff rates on imported pork passed through consultations and this lowered tariff rate is temporary that would last in one year.

The executive order, he insisted, would not kill the swine industry as imports would address 28.5 percent of average pork consumption of Filipinos.

Dominguez, however, conceded that the government would lose P13.8 billion in revenues due to reduction in tariff rates, but said P67.83 billion would be saved by consumers because of EO 128.

The Senate wanted President Duterte to withdraw his order submitted to Congress when it was not in session.

Senators likewise questioned why the Department of Agriculture (DA) recommended the importation of 404,000 metric tons (MT) of pork although the real deficit is only 150,000 metric tons.

Earlier, Duterte recommended to Congress to increase the minimum access volume (MAV) for pork imports by 350,000 MT.

Senator Panfilo Lacson asked aloud why there is an increase in pork MAV since operations of most restaurants and hotels are negatively affected by lockdowns.

Hog raisers said they do not question the decision of government to import pork but not that big volume.

Related Tags

tariff EO 128 pork import Pork Prices
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