MAV increase not enough to stabilize prices – MITA

MANILA, Philippines — Meat importers said the recommendation of President Duterte to increase the minimum access volume (MAV) of pork imports is not enough to stabilize market prices.

“It’s the right move to increase pork supply.“ However, this would not bring down the price of pork. Only with the reduction of import duty can this happen,” Meat Importers and Traders Association (MITA) president Jess Cham told The STAR.

On Friday evening, presidential spokesperson Harry Roque confirmed that Duterte has recommended to Congress the increase in the MAV for pork for this year by 350,000 metric tons (MT), in addition to the current 54,000 MT. This was in line with efforts to augment supply and stabilize rising prices of pork.

The Department of Agriculture (DA) earlier proposed to increase the MAV for pork to 400,000 MT from the current 54,000 MT. It also recommended to lower tariff for in-quota pork imports or those within the MAV to five percent for the first three months and this will be increased to 10 percent afterwards.

Current imports under MAV, are slapped with a 30 percent tariff. For those outside MAV a proposal of 15 percent tariff is initially eyed, before hiking to 20 percent.

At present, out-quota imports are levied at 40 percent. The proposal covers meat of swine, fresh, chilled or frozen.

He added that an executive order on the matter could be issued by the President while Congress is on break.

Under Section 1608 of the Customs Modernization and Tariff Act, the President can only make changes on tariffs when Congress is not in session.

As Congress remains in recess, Cham said they are looking forward to an executive order on the lowering of tariffs soon.

“We look forward to PRRD signing the executive order soonest. As it is we could have had relief earlier if Congress had gone on special recess to allow the President to sign. But that’s water under the bridge. We make do the best we can,” Cham said.

Sotto reiterated the sentiment of the Senate to oppose the lowering of the pork tariff as it will kill the local hog raising industry.

The Senate earlier adopted a resolution to urge the President to disapprove the recommendation of the DA to lower the tariff rates and increase the minimum access volume of imported pork products.

The resolution also aims to persuade Duterte to declare a state of national calamity due to outbreaks of the African swine fever.