PRESIDENT Duterte still backs the Department of Agriculture’s (DA) decision to temporarily lower the tariff for pork despite the opposition of lawmakers and other stakeholders.
This, as Dar assured members of the House of Representatives the arrival of the pork imports will be closely “calibrated” to avoid upending the market and hurting local producers.
Another senator, meanwhile joined calls for Duterte to hold a dialogue with stakeholders, amid continuing concerns the back-to-back move to cut tariffs while expanding minimum access volume of pork imports will lead to the “collapse” of the P300-billion local hog industry.
In an online press briefing on Monday, Presidential spokesman Harry Roque said Agriculture Secretary William Dar still has the confidence of the President, when it comes to addressing the local pork shortage.
“It appears the President still trusts the advice of Secretary Dar even if it is contrary to that of the senators,” Roque said.
Roque was referring to DA’s proposal to lower the tariff, while increasing the MAV or established in-quota for pork.
The Palace released Executive Order 128, which temporarily lowered the tariff of fresh, chilled or frozen meat of swine for at least a year.
Dar assures House
Amid the increasing calls to revoke EO 128, Secretary Dar on Monday assured Congress of a “calibrated arrival” of pork imports into the country, apparently to allays fears of a flood of imported meat.
During a joint hearing of House Committee on Agriculture and Food and House Committee on Trade and Industry, Dar reiterated that EO 128 would not “kill” the Philippine hog industry.
“Our ultimate goal is really the imports will lower the prices of pork and tame inflation. We would like to assure that calibrated arrival of said imports will be properly managed,” he said.
“This importation regime [under EO 128] is temporary. This will only be effective for a year. It is an immediate and temporary response to the deleterious impact of the surging prices of pork and other commodities,” Dar added.
The Bureau of Animal Industry is now issuing clearances for pork importation, Dar said. “The EO 128 is now in effect and that continues to be implemented by us. Whatever is needed in terms of import clearances being requested by importers.”
Earlier, the Meat Importers and Traders Association (Mita) vowed to supply the country with 100 full-container load of headless carcass at P200 per kilogram.
Price cap on imports
In the same hearing, Philippine Chamber of Agriculture and Food Inc. President Danilo Fausto asked the DA to impose a price ceiling on imported pork.
“What I’d like to propose if possible is to impose ceiling for imported pork for the benefit of the consumers and not the importers,” Fausto added.
Dar said the DA will study the matter.
From 17 lawmakers last week, a total 22 lawmakers now support House Joint Resolution (HJR) 37 immediately terminating or withdrawing EO 128, temporarily modifying the rates of import duty on fresh, chilled or frozen pork meat and rejecting the staggering expansion of the MAV of pork imports.
Lawmakers cited Section 1608 (f) of RA 10863 or the Customs Modernization and Tariff Act, where Congress has the power to withdraw or terminate the delegated power of the President to reduce existing rates of import duties.
They said EO 128 would cause irreparable damage to the pork industry and to the agricultural sector as a whole and runs contrary to the constitutional mandate to promote the general welfare of the people.
The lawmakers said the government must instead implement more effective and long-term solutions to strengthen and address the repopulation and rehabilitation of the local pork industry.
House Committee Agriculture and Food Chairman Mark Enverga of Quezon said his committee will set another hearing for HJR 37.
In an appeal letter, Enverga, Speaker Lord Allan Velasco and Trade and Industry Chairman John Reynald Tiangco of Navotas had asked Duterte to reconsider his recommendation increasing the MAV for pork by 350,000 metric tons (MT) while retaining the existing 40-percent tariff.
“Allowing importation beyond the shortage and with a lower tariff will cause oversupply not only in Luzon, but also in the Visayas and Mindanao where there is ample supply of pork,” said Enverga.
“The members of the Committees [on Food and Agriculture and House Committee on Trade and Industry] are one with the livestock sector in expressing its opposition to the volume being requested by DA [Department of Agriculture], as industry data and data provided by the Philippine Statistics Authority [PSA] only showed a shortage of 150,275 metric tons,” he added.
Presidential dialogue
Dar recommended the lower tariffs and expanded MAV after the local African Swine Fever (ASF) killed or led to the culling of thousands of hogs, which greatly diminished the supply of pork in the domestic market.
Most senators, including Majority Leader Miguel “Migz” Zubiri, have rejected the proposal since they fear it will flood the market with imported pork, which will “exacerbate” the plight of local hog raisers.
“I think the President is not aware of the impact of the new EO [on] farmers especially for hog raisers,” Zubiri said in an interview with PTV.
Zubiri said members of the Senate together with stakeholders are now open to having a dialogue with Duterte to try to persuade him to scrap EO 128. The first call for a dialogue with stakeholders was made last week by Minority Sen. Kiko Pangilinan.
Roque reiterated the President is open to listening to the position of the Senate.
However, he said members of the Senate and House of Representatives are empowered under the Constitution to revoke the EO 128 since it is a tariff fixing.
“The President will respect the decision of the Senate and Congressmen [on the said issue],” Roque said.
Senate leaders said last week that while most of them support the resolution to ask Duterte to recall his EO 128, they will be forced to revoke the EO when they reconvene on May 17, as they remain unconvinced by DA’s estimates of the projected shortfall in pork supply.
In pushing the dialogue with hog raisers, Pangilinan said Duterte’s sitting down with hog raisers’ groups would let him “better understand their plight and put in place the right solutions to save the local industry.”
In a statement, Pangilinan cited the hog raisers’ gripe aired at a Senate hearing that they were not consulted before EO 128 was issued.
The opposition senator, however, held out hopes the President would reconsider once he hears the side of the affected local hog traders. “We believe the President is not deaf and blind to the woes of our local hog raisers. If he talks to them, he would see the reality on the ground.”
Senators convened as a Committee of the Whole and conducted hearings on April 12 and 15; they passed a Resolution asking Duterte to withdraw EO 128. With Butch Fernandez
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