5% tariff to keep prices of canned meat low

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    The Department of Trade and Industry (DTI) said the retention of a low tariff on input to canned meats should translate to stable prices and supply of these products in the market.

    DTI Secretary Ramon Lopez yesterday said the inter-agency Cabinet level committee on tariff and related matters will recommend to President Duterte to keep at 5 percent tariff on mechanically-deboned meat (MDM), denying a petition by local producers to raise the duty to 40 percent .”There is no need to increase the tariff to 40 percent because there is no local producers to protect and since MDM is a main cost component in low priced canned and processed meat products,” Lopez told reporters in a text message.

    A 40-percent tariff will only increase cost and prices of most canned meat products that are also part of basic goods in the suggested retail price system of the DTI, he added, “These products are what majority of the Filipino consumers buy and it will lead to inflation of basic goods, if MDM cost increases,” Lopez said, MDM is cheaper meat additive used in low priced canned goods.

    “We are in the process of completing the official endorsement from each member of the CTRM but all member- Secretaries have given their support,” said Lopez.