Friday, May 17, 2024

DA legal unit frowns on splitting MAV Plus

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DIVIDING the additional 200,000 metric tons (MT) of pork imports under the minimum access volume (MAV) runs contrary to the intent and purpose of President Duterte’s Executive Order 133, based on the legal opinion of the Department of Agriculture’s (DA) legal service.

Documents obtained by the BusinessMirror showed that the DA’s legal service opined that the earlier recommendation of the MAV Advisory Council (MAV-AC) to divide the additional pork MAV equally across 12 months is against EO 133.

The DA legal service argued that EO 133, issued by Duterte in May as part of the Executive’s twin measures to boost domestic pork supply and pull down pork prices, was clear in referring to “MAV year” and not calendar year.

Local pork producers had lobbied for dividing the MAV+ across 12 months in parallel with the 1-year tariff reduction. (Related story: https://businessmirror.com.ph/2021/05/20/higher-pork-mav-panel-pitches-1-year-period/)

“As such, clearly, the intent of EO No. 133 is to increase the volume in MAV of pork for the MAV Year 2021 which covers the period from February 1, 2021 to January 31, 2022,” the DA legal service said in its memorandum to MAV Secretariat Executive Director Jocelyn A. Salvador and Agriculture Undersecretary William C. Medrano.

The DA legal service submitted its legal opinion to the two high-ranking officials last May 25, four days after Salvador sought the department’s help regarding the MAV-AC’s recommendation for the pork MAV+.

Salvador’s office sought a legal opinion on the following issues: whether EO 133 must follow the regular MAV year, and whether the EO can be amended to be implemented one whole year. The DA legal service pointed out that the effective implementation coverage of the pork MAV+ was from May 25 and until the end of the MAV year, which is January 31, 2022.

On the recommendation of the MAV-AC to seek an amendment of EO 133 to cover the proposed 12-month distribution period, the DA legal service said it may run against the “intent and purpose” of Duterte’s measure.

In making its point, the DA legal service noted the last “whereas” provision of EO 133 which highlighted that, “it is imperative to immediately address the current supply gap in pork meat, to provide consumers with adequate and affordable food, and to lower information.”

The DA legal service also considered Section 2 of EO 133, which directed the MAV Management Committee “to ensure compliance with the existing IRR and other pertinent laws and regulations in attaining the purpose” of the said measure.

“With the foregoing, it is thus imperative to immediately address the current supply gap of pork meat to provide adequate and affordable pork and thereby lower inflation,” it said.

“To stall the implementation of EO No. 133 by seeking an amendment thereof appears to be contrary to its intent and purpose to address an emergency,” it added.

The DA legal service said the issues arising from the MAV-AC’s recommendations could be taken up and resolved by the MAV-MC since the former is advisory in nature.    

It has been a month since Duterte ordered the increase in pork MAV but the MAV-MC has not approved the final guidelines to facilitate the measure.

Agriculture Secretary William D. Dar told the BusinessMirror they are now “securing the approvals” of MAV-MC members.

The MAV-MC, which is chaired by Dar, is composed of the Secretaries of Finance, Trade and Industry, Science and Technology, Agrarian Reform and Socioeconomic Planning.

Socioeconomic Planning Secretary Karl Kendrick T. Chua told the BusinessMirror they are currently studying the proposed MAV+ guidelines while sources confirmed to the BusinessMirror that the Department of Finance is also scrutinizing the guidelines.

Last week, a DA interagency committee recommended that 55 percent or about 110,000 MT of the pork MAV+  be imported within July to September to immediately boost domestic supply and temper retail pork prices. (Related story: https://businessmirror.com.ph/2021/06/02/d-a-panel-import-55-of-mav-plus-within-july-september/)

The BusinessMirror learned that the interagency committee created by Secretary Dar and led by Agriculture Assistant Secretary Noel Padre has sent its recommendation for the pork MAV plus implementing guidelines to the MAV Management Committee (MAV-MC).

Read full article on BusinessMirror

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