Senate and the economic managers have reached a compromise on the tariff rates and minimum access volume (MAV) on imported pork products.
Senate President Vicente Sotto III yesterday said Executive Order 128 will be amended, without giving details.
The economic managers, who were supposed to give the official numbers on the new tariff rates and MAV, could not be reached for comment. But unconfirmed reports point to a higher tariff rate and a lower MAV.
“Compromise reached!” Sotto said in a Viber message to the media, adding Senate and the economic managers had to “strike a balance between accepting a formula in the reduction of inflation and the protection of the local swine industry.”
EO 128 was issued by President Duterte on April 7 lowering tariff rates and raising the MAV on imported pork products in a bid to address the shortage of pork due to the impact of the African swine fever.
Senators have been opposing EO 128, saying it will “kill” the local hog industry on fears imported pork will flood the market.
Albay Rep. Joey Salceda, chair of the House committee on ways and means, said EO 128 should be given a chance to work as meat remains the major contributor to inflation, especially food inflation.
“Decisive action is now needed. I have my reservations about EO 128, but now that it is law, we must give it a chance to work,” he said.
EO 128 lowered the tariff on pork within MAV to five percent in the first three months. The tariff is raised to 10 percent in the succeeding nine months before it reverts to 30 percent after a year.
The tariff rate on pork outside MAV is lowered to 15 percent in the first three months and increased to 20 percent in the succeeding nine months, before it reverts to 40 percent after the 12th month.
By implementing the importation of pork at lower tariff, inflation can go down to 3.8 percent.
Salceda said for now, domestic supply cannot handle the demand for pork meat and stabilize prices and “we have to import for the moment.” – With Wendell Vigilia
