Leaders from various sectors hailed the recently enacted Anti-Agricultural Economic Sabotage Law, recognizing it as a pivotal measure to protect consumers and farmers from illegal trade and to bolster the Philippine agricultural industry.
“We strongly commend the signing into law of the Anti-Agricultural Economic Sabotage Act. This has been one of the Chamber’s key priority legislations. We anticipate significant growth in the agricultural sector for local producers and legitimate importers,” said Chris Nelson, Executive Director and Trustee of the British Chamber of Commerce in the Philippines.
Saturnino Distor, President of the Philippine Tobacco Growers Association (PTGA)
Saturnino Distor, President of the Philippine Tobacco Growers Association (PTGA), also expressed his gratitude. “Lubos kaming nagpapasalamat kay Presidente Ferdinand ‘Bongbong’ Marcos Jr. at sa kanyang administrasyon sa walang-sawang pagsulong na maisabatas ang Anti-Agricultural Economic Sabotage Law. Sa pagpapatupad nito, kami ay nabibigyang pag-asa na mayroong sapat na proteksyon ang pagsasaka ng tabako laban sa pagpasok ng iligal na produkto dito sa bansa,” he said.
The PTGA, representing 50,000 tobacco farmers applauded the legislative victory as a crucial step toward ensuring the sector’s sustainability amid the growing problem of smuggled tobacco. “Dagok sa ating mga magsasakang tabako ang patuloy na pagdagsa ng murang iligal na sigarilyo, dahil na rin sa mataas na presyo ng ligal na sigarilyo gawa ng taon-taon na pagtaas ng buwis. Kami ay umaasang ang hakbang ng gobyerno laban sa mga smugglers at iligal na traders ay patuloy na makapag-angat sa estado ng tabakong Pilipino at makaginhawa na rin sa ating mga magsasaka at kanilang mga pamilya,” Distor added.
Antonio Israel, lead convenor of the anti-smuggling advocacy group EKIS sa Smuggling, highlighted the law’s significance in combating smuggling. “We are thankful for the President and the lawmakers who have toiled to pass the Anti-Agricultural Economic Sabotage Law. We’ve seen the damaging impact of smuggling, particularly the proliferation of fake and illegal nicotine products, which not only robs our government of billions of pesos in revenues but also victimizes legitimate businesses and consumers. With the new law, we have more reason to believe that the fight against illicit cigarette and e-cigarette trade is not a losing battle,” he said.
President Ferdinand Marcos Jr. signed the law on September 26, 2024. The law imposes stricter penalties for smuggling, hoarding, profiteering, and forming cartels for agricultural and fishery products, including processed and unprocessed tobacco.
President Marcos in his speech during the ceremonial signing underscored the law’s transformative potential. “The passage of the Anti-Agricultural Economic Sabotage Act will set in motion transformative outcomes. It is a proactive measure to prevent the entry of smuggled agricultural products, ensuring that the correct duties and taxes are paid, while imposing higher penalties on violators. This law shapes a stronger, more resilient agricultural sector that defends both our farmers and our consumers,” he said.
Under the new law, the smuggling of tobacco crops and cigarettes worth at least P3 million is classified as an act of economic sabotage, a non-bailable offense. “Smuggling, hoarding, profiteering, and cartel operations involving agricultural and fishery products will now be classified as economic sabotage, a non-bailable offense punishable by life imprisonment and fines up to five times the value of the goods involved. And let me be clear, this law does not just target the masterminds; it holds all accomplices accountable, financiers, brokers, employees, even transporters,” the President Marcos said.
Senator Cynthia Villar, chairperson of the Committee on Agriculture, Food, and Agrarian Reform and sponsor of the measure in the Senate, earlier emphasized that this legislation is an essential tool in the fight against agricultural smuggling and economic sabotage.
“It also protects the State from tax evaders and non-payers of duties. This will ensure the well-being of our agricultural producers, consumers, and the whole economy,” she said.
House Speaker Ferdinand Martin Romualdez said, “This law marks a critical turning point in our fight to defend the livelihood of Filipino farmers and fisherfolk and secure affordable food for all. With the Anti-Agricultural Economic Sabotage Act in place, we are sending a clear message: there will be no tolerance for those who manipulate the market and jeopardize our food supply.”
“This would also benefit our farmers and fisherfolk whose livelihood are imperiled by unscrupulous hoarders and smugglers,” Romualdez added.
Senate President Francis Escudero said the legislative measure would send a strong message that the government will use all its resources to hold accountable individuals and groups who engage in smuggling, hoarding, profiteering, and other uncompetitive and exploitative practices in the agriculture sector.
"Farmers, fisherfolk, livestock and poultry raisers, and legitimate traders have long been suffering from the operations of smugglers and other individuals and groups engaged in the manipulation of the market,” Escudero said.
The Bureau of Internal Revenue (BIR) estimates that foregone revenue due to illicit tobacco trade reach up to P100 billion annually.
Data from the National Tobacco Administration showed there are 2.2 million Filipinos who are financially dependent on tobacco including more than 430,000 farmers, farm workers and their family members.