THE government will address supply issues to lower prices after tariff reductions were initially assessed to have minimal impact on inflation.
Trade Secretary Ramon M. Lopez said the findings of the Tariff Commission have largely ruled out a significant impact on prices.
“Based on the report of Tariff Commission, modifying the tariff rates will not have a significant impact on the prices of agricultural products because many of these have relatively low tariff bases, or would have landed costs lower than local prices. After consulting with various stakeholders… there’ll be minimum movement if we bring tariffs to 5%,” Mr. Lopez said in a statement over the weekend.
“So, this would not be the solution. Instead, we need to focus on supply-oriented actions and volume enhancements that would have immediate impact,” he added.
The Department of Trade and Industry (DTI) chairs the Committee on Tariff and Related Matters (CTRM) which advises the president and the National Economic and Development Authority Board.
Economic managers earlier proposed tariff modifications for meat, edible offal, fish, vegetables, feed wheat, and corn to a uniform 5%.
“It was concluded that the reduction on most favored nation rates will not significantly reduce prices as the agricultural products are already being sourced from Free Trade Agreement (FTA) partners under lower preferential rates,” the statement added.
The result was based on a CTRM meeting held on Aug. 15.
“We need to focus our efforts in finding realistic and practical solutions to lower the prices while balancing the interests of both consumers and producers,” Mr. Lopez added.
One of the government’s measures to boost supply is the Department of Agriculture’s tapping the maximum imports allowable of 17,000 metric tons of round scad, or galunggong, to be unloaded in Bureau of Fisheries and Aquatic Resources-accredited cold storage facilities and sold in Navotas Fishport.
“We’re also amending the Fisheries Administrative Order No. 195 to allow the sale of imported fish in wet markets,” Agriculture Secretary Emmanuel F. Piñol was quoted.
The DA has also asked the Bureau of Customs to suspend the imposition of special safeguard measures on chicken meat imports.
Mr. Piñol has also directed minimum access volume certificate holders to utilize their allocations to import pork, or face the certificates’ cancellation for rebidding.
The DA said MAV certificate holders utilize 50% only of their allocations.
“DTI and DA will also be conducting regular inspection of commodity importers’ warehouses to establish level of inventory. Likewise, arrival and distribution of NFA rice imports will also be monitored,” the DA added. — Janina C. Lim

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