Duterte sticks to temporary pork tariff reduction

MANILA – President Rodrigo Duterte has stood by his decision to impose a temporary reduction on tariff rates on imported pork products, Malacañang said Tuesday.

In an online press briefing, Presidential Spokesperson Harry Roque said Duterte had decided to back the recommendation of his economic team and the Department of Agriculture (DA) to lower pork tariffs.

The decision was to raise pork imports to about 400,000 metric tons (MT) this year to augment pork supplies in the country, Roque said.

“Ang sabi naman ng Presidente, ito po ay number one, para maibsan nga ‘yung kakulangan ng supply na naging dahilan kung bakit naging napakamahal ng baboy sa palengke (The President said this would, number one, address the lack of supply that triggered the rise in the prices of pork products in the markets),” he said.

Duterte made the latest move despite the senators’ appeal to revoke his Executive Order (EO) 128 which temporarily modifies the rates on import duty on fresh, chilled, or frozen meat of swine.

Roque said lowering pork tariffs would also help tame the country’s inflation since meat is the top contributor to overall inflation.

He noted that the temporary pork tariff reduction could ease the inflation rate by 3.8 percent from 4.2 percent recorded in March this year.

“Importante na maibaba sa lalong mabilis na panahon ang presyo ng baboy kasi ito po ay nagko-contribute sa mataas na inflation rate (It’s important to bring down pork prices as soon as possible because it contributes to higher inflation rate),” Roque said.

Just temporary

In a pre-recorded meeting with Cabinet officials on Monday, Duterte expressed willingness to revoke EO 128 as soon as there is an increase in the country’s domestic pork supply.

Acting Socioeconomic Planning Secretary Karl Kendrick Chua told Duterte during the meeting that reducing pork tariffs would help address the deficiency in supply and bring down the country’s inflation rate.

While the President understands the senators’ sentiment, he believes that lowering tariff rates on pork products would help stabilize pork prices in the local markets, Roque said.

Roque said the reduction in pork tariffs is merely temporary.

“Ang mensahe ni Presidente po, temporary po itong kaniyang pinayagan na mag-akyat ng MAV (minimum access volume) at temporary din po itong pagbaba ng taripa (The President’s message is he just temporarily approved the increase in MAV and the reduction of tariffs),” he said.

Still up to lawmakers

Duterte on April 7 inked EO 128, reducing the tariff rate on pork imports within the MAV to 5 percent for the first three months upon the effectivity of the order and to 10 percent for the next nine months from the current rate of 30 percent.

On the other hand, pork imports outside MAV were also reduced with a lower tariff of 15 percent for the first three months and 20 percent for the succeeding nine months from the current rate of 40 percent, according to the EO.

Roque, however, acknowledged that Congress has the power to overturn Duterte’s decision.

He reiterated that the executive branch will respect the senators’ decision in case they revoke Duterte’s EO 128.

“Of course, that is subject to revocation if Congress wants dahil sa Saligang Batas, talagang exercise of delegated authority lang po ang ginagawa ni Presidente ‘pag dating sa tariff fixing (Of course, that is subject to revocation if Congress wants because, under the Constitution, the President merely exercises his delegated authority on tariff fixing). And it can only be exercised when Congress is not in session,” Roque said.

The Senate Committee of the Whole on April 15 adopted a resolution asking Duterte to revoke EO 128, saying that the order might kill the local hog industry.

Senate Minority Leader Franklin Drilon earlier cited Section 1608(f) of Republic Act 10863 or the Customs Modernization and Tariff Act which states that “the power herein delegated to the President may be withdrawn or terminated by Congress through a joint resolution.”