Importers Want Extension of Executive Order 171

Executive Order No. 171 extends the validity of EO 135 and 143, which lowers the most favored nation (MFN) tariff rates for the importation of rice and pork to the end of 2022.

Importers are pushing for the extension of Executive Order 171 to soften the blows of the effects of the Russia – Ukraine war on prices. However, local producers are opposing this petition stating that the reduced tariff on imports did not benefit consumers and that local agriculture should be protected. According to local producers, other economies are prioritizing the protection of local agriculture for food security.

Aside from pork and rice tariffs, the EO would also reduce the MFN tariff for corn up to 15% out-quota and 5% for in-quota, with the reason that corn accounts for more than 50% of the total production cost of swine farms and large-scale broilers.

To lower costs of electricity or for maintenance, EO No. 171 also temporarily removes the 7% MFM tariff imposed on coal as this is a needed raw material for generating power.

The Tariff Commission conducted a virtual public hearing with the Foundation for Economic Freedom (FEF), filing the petition for the importers and urging for the EO 171’s extension at least until the end of 2023. On the FEF’s presentation, the prices of pork can be expected to balloon to ₱400 a kilo from the current price of ₱340, if the EO is not extended.

The FEF admitted that the lowered pork tariff did not lessen the real prices of pork in 2021 value, the EO 171 still lessened the retail price increase of pork in 2022.

Source: Manila Bulletin