THE government is preparing new measures to combat the steep rise in commodity prices, according to the National Economic and Development Authority (Neda).
The President has issued Administrative Order (AO) No. 20, which instructed the Department of Agriculture (DA) to take the lead in streamlining administrative procedures
and policies on the importation of agricultural products, and remove non-tariff barriers. (See: //minminchicago.com/2024/04/22/marcos-wants-non-tariff-curbs-on-farm-products-out/).
Local producers, however, are wary of the order, saying it will gravely hurt even more their ranks. Story on A14 “AO 20 could favor undervalued, misdeclared agri goods—Sinag”
On the sidelines of the Filipinnovation forum on Monday, Neda Undersecretary for Planning and Policy Rosemarie G. Edillon told reporters these measures include fast-tracking the release of Sanitary & Phytosanitary Import Clearances (SPSIC).
“If there’s really a pressing issue, to disapprove it, do it right away. If none, then once it’s not acted upon for a certain period, and it seems there’s no problem, then, it should be deemed approved,” Edillon told reporters.
Edillon said these are some examples of non-tariff measures (NTMs) that can be addressed to bring down the cost of food as well as encourage the free flow of goods into the market.
She explained that the AO issued by the President was part of the recommendations of the inter-agency Committee on Tariff-Related Matters (CTRM), one of the seven interagency committees under the Neda Board, chaired by the President.
“We’re saying that these are what we call strategic trade policies. And therefore, to the extent that such trade might be facilitated, then that should be the case. So that we can really get the full benefits of that policy,” Edillon said, partly in Filipino.
Inflation outlook
Edillon said that while intense heat has affected many parts of the country, inflation in April may have improved compared to March, given the rice harvest.
As of April 20, the National Disaster Risk Reduction and Management Council (NDRRMC) reported that damage caused by the El Niño amounted to P1.24 billion.
The severe dry spell affected 29,409 farmers and 26,731.4 hectares of crops nationwide. No damage was recorded for agriculture infrastructure, machineries and equipment as well as livestock, poultry, and fisheries.
NDRRMC said 19 provinces in Luzon; 14 provinces in the Visayas; and eight provinces in Mindanao have a potential to experience meteorological drought conditions.
There are also 23 provinces with the potential to experience a dry spell; and eight provinces have the potential to experience dry conditions.
“We are concerned that many areas are still experiencing this intense heat. But with respect to our farming sector, many of them have done advance planting. And so we hope that it will still be enough to meet our demand,” Edillon said.
MAV concerns
Edillon said removing the minimum access volume (MAV) scheme can be considered. The MAV scheme was part of the Philippines’s commitment to the World Trade Organization (WTO) which tends to limit access to imports.
However, Edillon said an important consideration is the possible lack of flexibility it can cause the Philippines later on.
Earlier, Monetary Board V. Bruce J. Tolentino said the MAV must be abolished as it could be a source of corruption. He said the government wants to increase access for everyone who wants to bring in imported agricultural goods which will help beef up domestic food supply. (See: //minminchicago.com/2024/04/15/mav-scheme-must-be-nixed-risks-corruption-mb-member/).
“Yes, we can actually move towards removing it, but that might reduce our flexibility later on. If we need to re-impose it, ito yung medyo anti-WTO [World Trade Organization]. Pwede naman siyang i-adjust as necessary,” Edillon said.
Under Republic Act 8178, the Agricultural Tariffication Act, the MAV “refers to the volume of a specific agricultural product that is allowed to be imported with a lower tariff as committed by the Philippines to the World Trade Organization [WTO] under the Uruguay Round Final Act.”
The law also mandated the establishment of an equitable and transparent mechanism to allocate the MAV for agricultural commodities whose quantitative restrictions have been lifted.
Furthermore, the law said the mechanism should have the least government intervention, address the requirements of each geographical area, and should not entail any cost to importers of these products to the detriment of local consumers.
Image credits: NEDA