Marcos directive to make food cheaper for Pinoys, says Salceda
At A Glance
- Economist-solon Albay 2nd district Rep. Joey Salceda is anticipating lowered food prices thanks to President Marcos' latest directive on the removal of non-tariff impediment on the importation of agricultural goods.
- The Bicolano was referring to AO No.20, titled, "Further streamlining administrative procedures and policies, and removing non-tariff barriers on the importation of agricultural products".
Albay 2nd District Rep. Joey Salceda (left) and President Ferdinand Marcos Jr. (Photo from Rep. Salceda's office, BBM Media Bureau)
Economist-solon Albay 2nd district Rep. Joey Salceda is anticipating lowered food prices thanks to President Marcos' latest directive on the removal of non-tariff impediment on the importation of agricultural goods.
"The AO [administrative order] will make food cheaper. Right now, it's very difficult as an honest exporter to sell food to the Philippines," said Salceda, chairman of the House Committee on Ways and Means.
The Bicolano was referring to AO No.20, titled, "Further streamlining administrative procedures and policies, and removing non-tariff barriers on the importation of agricultural products".
According to Salceda, the country has among the highest rates of protection for its domestic goods, with a protection level of around 27 percent as a share of farm receipts across all agricultural goods.
"With such levels of trade protection, we should not be surprised why food is expensive in the country," he said.
"Such protection levels also do not directly accrue to the agricultural sectors they are supposed to protect. They also incentivize those who can completely disregard the law or corner domestic trade," explained Salceda.
He said President Marcos' AO No.20 "is a step in the right direction".
"If implemented fully by the DA (Department of Agriculture), it will open sugar imports to direct industrial users. That could end the stagnation of the food manufacturing sector. Right now, sugar prices in the Philippines are the highest in ASEAN (Association of Southeast Asian Nations)," he noted.
Salceda further said that the Palace directive "will also poke holes in speculative bubbles in the price of fish, which has high levels of non-tariff protection, such as the Certificate of Necessity to Import".
He says that apart from the Rice Competitiveness Enhancement Fund (RCEF), there is currently no extant mechanism for directly supporting a domestic sector through tariff revenues.
"We hurt consumers with high trade barriers, but we also do not support farmers directly with tariff revenues. Of course, tariffs still play a key role. The next step is to adopt measures that earmark tariffs directly to domestic producers and consumers," he said.
"I filed HB (House Bill) No.2471 which earmarks all agricultural tariffs directly to their corresponding domestic agricultural sectors," Salceda shared, pointing to a measure he filed back in July 2022 or near the start of the 19th Congress.
"Apart from that, we are also preparing to submit a technical working group report on the Livestock, Poultry, and Dairy Competitiveness Act. The proposal will earmark meat and dairy import tariffs towards the domestic sector. We are doing something similar for corn," he said.
The full title of HB No.2471 reads, "An Act establishing a scheme of allocating tariff revenues from agricultural imports to domestic support, amending for the purpose Republic Act No.8178, as amended by Republic Acts No.9496, 10848, and 11203, entitled: 'An Act replacing quantitative important restrictions on agricultural products, except rice, with tariffs, creating the Agricultural Competitiveness Fund, and for other purposes.'"