PRESIDENT Duterte has issued a new executive order (EO) which raised the minimum access volume (MAV) for pork imports to plug the supply shortfall created by African swine fever (ASF).
Duterte issued EO 133 through Executive Secretary Salvador Medialdea on Monday. The EO increased the MAV for pork this year to 254,210 MT from the current 54,210 MT.
Relatedly, Duterte issued Proclamation 1143, placing the country under a state of calamity due to the effects of the ASF.
The issuance of EO 133 came a month after the President signed EO 128 which reduced the tariff rates on pork imports until April 7, 2022.
“The MAV of pork meat for the MAV Year 2021 of 54,210 MT is hereby increased to 254,210 MT, provided that any unavailable balance at the end of 2021 shall not be carried over to 2022,” EO 133 read.
EO 133 is set to take effect immediately upon publication in the Official Gazette or in a newspaper of general circulation.
Compromise
In March, the President asked Congress to approve his recommendation to raise the MAV for pork by 350,000 MT to 404,210 MT. Congress, however, did not act on his proposal and some lawmakers had even urged the President to reconsider his decision to cut tariffs and raise the MAV for pork.
“This [EO 133] is part of the compromise of the Executive Department with the Senate on the issue of MAV,” Presidential spokesman Harry Roque said in an online briefing.
Some senators said the “excessive pork MAV” this year could flood the local market with imported pork, which will further worsen the plight of local hog raisers, who are still reeling from the effects of ASF.
ASF killed or led to the culling of 3 million hogs, which reduced the available supply of pork and put in pressure on inflation.
Last week, the Department of Agriculture said tariff rates for pork imports as prescribed by EO 128 will also be increased by 5 percentage points, both for in-quota and out-quota volume for the entirety of its duration or until April 7, 2022.
With the compromise, the in-quota tariff rate for pork imports until July 7 would be 10 percent while out-quota would be 20 percent for out-quota from the initial lowered rates of 5 percent and 15 percent, respectively.
State of calamity
To start the rehabilitation of the local hog industry and keep the prices of pork in check, Duterte also issued Proclamation 1143, which placed the country under a state of calamity due to the effects of ASF.
Following the said declaration, Duterte said local government units (LGU) will be able to access their Quick Response Fund to help them contain ASF in their jurisdiction.
He instructed the concerned government agencies and the Armed Forces of the Philippines to help in the ASF-related initiatives of LGUs.
Proclamation 1143 will remain in effect for one year starting on May 10, when Duterte signed the said issuance.
Image credits: Nonie Reyes