THE Philippines loosened its onion import rules after the agriculture department scrapped a non-tariff measure imposed by its previous administration aimed at managing the entry of the commodity.
The Department of Agriculture (DA) decided to revoke its previous circular that ordered the implementation of additional guidelines on the importation of fresh onions that were meant to manage the entry of the commodities to protect local farmers.
Senior Agriculture Undersecretary Domingo F. Panganiban issued Department Circular (DC) 3 series of 2023 that revoked the DC 8 series of 2021 issued by former agriculture chief William D. Dar.
âIn the interest of service, Department Circular No. 8 series of 2021 entitled âAdditional Guidelines on the Importation of Fresh Onionsâ is hereby revoked,â Panganiban said in DC 3, which he issued recently.
DC 8 issued by Dar implemented additional non-tariff measures on onion imports, particularly the requirement for the issuance of certificate of necessity (CNI) prior to any approved onion import programs.
DC 8, as it stipulated, was meant to âaddress the concernsâ of the local onion industry by âmanagingâ the entry of imported stocks.
CNI is a non-tariff measure issued by an agriculture chief to certify the need for importation, which is usually based on deemed shortage on a given commodity.
This means that the importation of a concerned commodity is not allowed unless the agriculture chief issues a CNI for it. The CNI is responsible for specifying for the volume to be imported in a given period of time.
Before the issuance of DC 8, onions did not have a requirement of CNI. In fact, the imposition of a CNI requirement on onion imports drew the ire of the United States, which lamented that it restricts food trade between the Philippines and its trade partners. (Related story: https://businessmirror.com.ph/2022/09/29/us-prods-phl-on-restrictive-agri-trade-policies/)
Washington asked the Philippines in a World Trade Organization (WTO) Committee on Agriculture (CoA) meeting how the CNI requirement on onions differs from a quantitative restriction scheme.
âPlease explain how restricting the volume of imports over a given period via the CNI requirement prior to the issuance of SPSIC (sanitary and phytosanitary import clearance) is different from a quantitative restriction, and explain the phytosanitary justification for implementing the CNI,â the United States said.
In fact, in December last year, the Philippines told the WTO COA that the Marcos administration is keen on reviewing the countryâs food trade measures, particularly rules on onion importation, that are allegedly being used by the government to âundulyâ restrict agricultural exports to the country. (Related story: https://businessmirror.com.ph/2022/12/07/phl-tells-wto-will-review-food-importation-policies/)
In its official communication, the Philippines explained that the new agriculture department leadership may review the countryâs existing SPSIC rules on food imports.
It was the Philippinesâs response to the series of questions fielded by the United States at the WTO regarding the formerâs alleged practice of using the SPSIC system to ârestrict flow of trade.â
Washington has long expressed concern over Manilaâs SPSIC system, which it argued has been limiting the entry of foreign agricultural products to the Philippines.
âAs a new administration has taken over the leadership of the Department of Agriculture, the Capital authorities could possibly review this measure,â the Philippines told the WTO Committee on Agriculture.
âWe will inform the Committee of developments on this regard,â it added. President Marcos Jr. concurrently sits as the countryâs agriculture secretary.