MANILA, Philippines – President Ferdinand Marcos Jr. approved the recommendation to extend lower tariff rates in food until the end of 2024 on Tuesday.
Executive Order 50, signed on December 22, is aimed at maintaining reasonable prices for essential goods in response to the impacts of both the El Niño phenomenon and the African swine fever (ASF) in the country.
“The present economic condition warrants the continued application of the reduced tariff rates on rice, corn, and meat of swine [fresh, chilled or frozen] to maintain affordable prices for the purpose of ensuring food security, managing inflationary pressures, helping to augment the supply of basic agricultural commodities in the country, and diversifying the country’s market sources,” stated the president.
El Niño, which will be expected in the first half of 2024, could negatively impact agricultural production and prices both locally and globally.
In addition to El Niño and the African swine fever (ASF), Marcos also highlighted that trade restrictions in some exporting countries contribute to inconsistencies in the supply of rice, corn, and pork in the nation.
The Customs Modernization and Tariff Act grants the president the power to adjust import duty rates. This authority is used to promote general welfare and national security, following recommendations from the National Economic and Development Authority (NEDA).
NEDA Secretary Arsenio Balisacan has previously stated that this extension is one of the government’s measures to address high inflation and safeguard the purchasing power of consumers.
“The proposed extension of the reduced tariffs will help ensure an adequate supply of agricultural commodities and maintain stable and affordable prices, thereby better managing potential inflationary pressures,” Balisacan said.
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