‘Liberal trade policy to make food affordable’

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Seven industry groups, including the American Chamber of Commerce of the Philippines (AmCham), called on the government to implement a “more open” trade policy to ensure the availability of safe and affordable food.

The groups said the country’s agriculture sector should “become more open to foreign trade and investments to help keep food safe and affordable to all Filipinos.”

Implementing such trade policy would “strengthen” the farm sector’s “capability of creating jobs for the rural population,” the groups said in a joint statement.

They said a “more open” agriculture sector would help attain the goal of a “stronger agriculture growth and food security” since it allows flexibility to fill the gap in domestic supply when local production falls.

The groups added that “predictable” imports entice investments in downstream industries especially when local farm inputs are inadequate for the industry’s requirements.

Also, they said competing with imported farm goods will open the opportunity for local producers to introduce innovations in the agriculture sector.

“As we push for a more open agriculture sector, it is important that we double up our efforts in keeping our country safe from possible diseases, pests, and other hazards that imported agricultural products may introduce,” the groups said.

“This cannot be stressed more given the disastrous entry of the African swine fever into the sector.”

The groups also urged the government to “more closely follow” internationally agreed disciplines in its rules and regulations concerning food imports, particularly in areas of transparency and non-discrimination.

“If the Department of Agriculture has to restrict entry of imports, authorities have to provide stakeholders with the reasons why, with supporting scientific data from their assessments of the risk, and information that the measures taken are the least trade restrictive to effectively address the risk,” they said.

The groups also said foreign investments are necessary to “intensify and diversify agricultural production.” These investments in agriculture sector, the groups added, would introduce “technologies which would enhance the comparative advantage of the sector’s products.”

“We urge authorities to take an inventory of all laws and regulations which discourage entry of foreign investments in the sector, and take away such unnecessary measures.”

The joint statement was issued by AmCham, Cold Chain Association of the Philippines, Federation of Filipino-Chinese Chambers of Commerce and Industry Inc., Fisheries and Aquaculture Board, Foundation for Economic Freedom, Meat Importers and Traders Association and the Philippine Association of Flour Millers Inc.

Image courtesy of Bloomberg News

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