THE newly-signed Anti-Agricultural Economic Sabotage Act is expected to curb smuggling and protect the livelihoods of thousands of Filipino farmers, according to various groups advocating for the agriculture and industry sectors.

Chris Nelson, executive director of the British Chamber of Commerce in the Philippines, praised the law’s recent signing, calling it one of the chamber’s key priorities.

“We expect to see significant growth in the agricultural sector for local producers and legitimate importers,” Nelson said.

The Philippine Tobacco Growers Association (PTGA), representing 50,000 farmers nationwide, welcomed the enactment of Republic Act No. 12022.

“The continuous influx of cheap, illegal cigarettes is a blow to our tobacco farmers, especially with the high prices of legal cigarettes due to annual tax increases. We hope the government’s action against smugglers and illegal traders will improve the state of Philippine tobacco and provide relief to our farmers and their families,” PTGA president Saturnino Distor said.

“With its implementation, we are hopeful that tobacco farming will receive adequate protection against the entry of illegal products into the country,” Distor said.

“We are thankful to the President and lawmakers who worked hard to pass the Anti-Agricultural Economic Sabotage Law,” said Anton Israel, lead convenor of EKIS sa Smuggling. “Smuggling, particularly of illegal nicotine products, not only robs the government of billions in revenues but also harms 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 Marcos Jr. signed RA 12022 into law last Sept. 26, 2024. Under the new law, crimes such as smuggling, hoarding, profiteering, cartel formation, and financing of illegal activities involving agricultural and fishery products are classified as acts of economic sabotage.

These offenses carry a penalty of life imprisonment and a fine of up to five times the value of the products involved.

The President said the law “will set in motion transformative outcomes,” adding that it is a proactive measure to prevent the entry of smuggled agricultural products, ensuring the correct duties and taxes are paid while imposing higher penalties on violators.

“This law strengthens our agricultural sector, protecting both farmers and consumers,” the President said.

Smuggling tobacco crops and cigarettes valued at least P3 million is classified as an act of economic sabotage and a non-bailable offense.

The law amends RA 10845, the Anti-Agricultural Smuggling Act of 2016.

Senate President Francis Escudero said the law sends a strong message that the government will hold accountable those involved in smuggling, hoarding, and profiteering in the agriculture sector. He said cracking down on smugglers would protect the public from substandard or unsafe goods.

“Farmers, fisherfolk, livestock, poultry raisers, and legitimate traders have long suffered from the operations of smugglers and other groups involved in market manipulation,” Escudero said.

Sen. Cynthia Villar, chair of the Committee on Agriculture, Food, and Agrarian Reform and sponsor of the measure, described the law as an act of self-preservation against economic saboteurs. She said it also protects the state from tax evaders, ensuring the well-being of agricultural producers, consumers, and the broader economy.

House Speaker Ferdinand Martin Romualdez hailed the law as a turning point in protecting Filipino farmers’ livelihoods and securing 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,” Romualdez said.

Data from the Bureau of Internal Revenue show the illicit tobacco trade results in up to P100 billion in lost government revenue annually. About 2.2 million Filipinos, including more than 430,000 farmers and farmworkers, depend financially on tobacco.