The antitrust watchdog Philippine Competition Commission (PCC) said the government should address institutional lapses in the implementation of policies considered non-tariff measures (NTMs) in the livestock and poultry sectors to avert their potential impact on prices.

In a market study, the PCC found that implementation challenges in enforcing NTMs restrict the market, which may lead to higher costs for importers that could be passed on to consumers.

“NTMs, while designed to achieve legitimate policy objectives, can impede growth and entry of imports if implemented with excessive compliance requirements or discriminatory intent,” the study said.

Since the Philippines is one of the largest meat consumers in the world, the government imposes regulations to ensure that such products are safe and of the best quality.

These regulations are referred to as NTMs since they are not tariffs, which are taxes imposed on imported products with the intent of raising government revenue and protecting domestic industries.

Instead, NTMs are generally not restrictive in nature, as they cover a broad range of measures such as quotas and licenses to ensure compliance with the country’s standards.

There are a total of 191 NTMs imposed on pork, beef, and chicken meat, of which 71 percent are sanitary and phytosanitary (SPS) measures.

The study found that institutional and procedural imperfections in the implementation of these measures can make them effectively function as non-tariff barriers (NTBs), which impede trade.

“NTM implementation on the livestock and poultry subsectors faces institutional and procedural challenges, entailing substantial regulatory costs for compliance and supply restrictions. These costs are shouldered by importers and often passed on to consumers through higher prices,” it said.

Among the lapses that the PCC flagged are flaws in SPS import clearance, the 90-day “must-ship-out” rule, licensing of cold storage warehouses, meat inspection at first and second borders, licenses to operate, certificates of product registration, as well as labeling and packaging requirements.

The commission said these measures are “considered stringent and administratively burdensome,” as they lead to recurring compliance procedures that raise costs for importers.

It also cautioned against so-called procedural imperfections in country/zone product clearance, licensing of meat importers, and accreditation of meat-exporting countries and foreign meat establishments.

“Procedural challenges encompass recurring process delays, thereby constraining companies’ ability to import commodities and maintain supply,” the study said.

To address these concerns, the PCC recommends streamlining the implementation of NTMs to better align domestic regulations with international best practices.

The study said unnecessary policies should be eliminated to balance costs and benefits, while enhancing the design of existing and future measures and easing private sector compliance in the process.

It added that this should be complemented by improvements in the regulatory framework and inter-agency coordination, alongside the development of a dedicated inter-agency task force to further optimize policies and the monitoring of NTM-related activities.

The PCC is also pushing for the inclusion of NTMs in the country’s pursuit of free trade agreements (FTAs) to ease processing hurdles and foster smoother trade operations.