Duterte signs EO on lowering tariffs on imported pork meat

By CNN Philippines Staff

Published Apr 7, 2021 10:30:59 PM

Metro Manila (CNN Philippines, April 7) Despite opposition from local hog raisers, President Rodrigo Duterte on Wednesday signed an executive order lowering tariffs on imported pork meat for a year.

"There is an urgent need to temporarily reduce the most favored nation tariff rates on fresh, chilled or frozen meat of swine to address pork supply shortage, stabilize prices of pork meat and minimize inflation rates," the order reads.

Under Executive Order No. 128, tariff rates for imported pork meat will be reduced to 5% to 20% from the current 30% to 40%.The tariff rate for imported fresh, chilled, or frozen pork meat within quota or minimum access volume (MAV) will be at 5% for the first three months upon the order's effectivity and 10% for the fourth to 12 months.

The tariff rate outside the MAV will be at 15% for the first three months upon the order's effectivity and 20% for the succeeding nine months.

The existing 30% to 40% tariff rate for imported pork meat will be restored after the 12th month.

More than a dozen groups of hog raisers and other agriculture organizations wrote to Duterte on Tuesday to oppose the Agriculture Department's proposal to import an additional 350 million kilos of pork at ultra-low tariffs, saying it will kill what's left of the local industry.

The local hog raisers suggested that funds should instead be allotted for biosecurity measures to prevent the further spread of the African Swine Fever, which is being blamed for the shortage in pork meat supply in Luzon.

Last March 26, Duterte recommended an increase in the MAV of pork imports by 350,000 metric tons in an effort to stabilize prices and increase the country's supply. The additional volume comes on top of the country's current MAV of 54,210 metric tons for this year.

The crisis pushed pork prices up from 320 to 400 per kilo, forcing the government to impose a price ceiling and set up a task force to deal with price manipulators and smugglers. The 60-day price cap on pork and chicken in Metro Manila will expire on Thursday.

Question: Do you agree with the government decreasing the import quotas on pork meat? Why or why not? If possible, back your answers with the International Trade Theories.