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Philippines: Business groups laud lifting of non-tariff barriers on agriculture
MANILA, Philippines — The Philippine Chamber of Commerce and Industry, Philippine Exporters Confederation Inc. and Philippine Food Processors and Exporters Confederation lauded government’s move to remove non-tariff barriers on imports of agricultural products.
In a statement yesterday, the groups said the issuance of Administrative Order (AO) 13 by President Duterte to lift the non-tariff barriers and streamline procedures to facilitate importation of agricultural commodities as part of efforts to address concerns on the high inflation rate is a positive development.
Following the issuance of AO 13, the groups are now awaiting the mechanics on importation of sugar from the Sugar Regulatory Administration (SRA).
Last month, Duterte issued AO 13 which directed the Department of Agriculture, National Food Authority, SRA and the Department of Trade and Industry to undertake immediate measures to remove administrative and non-tariff barriers on the import of agricultural products.
The groups said they have submitted a third letter to the SRA last Sept.26 to reiterate their appeal to be allowed to import an initial 100,000 metric tons of sugar to be used exclusively by domestic food processors.
Local food processors have raised concern on the prohibitive cost of refined sugar in the domestic market as such have put their products at a disadvantage compared to sugar food products from other Southeast Asian countries.
Under the Association of Southeast Asian Nations (ASEAN) Free Trade Agreement, sugar-based food products from the region enjoy preferential tariffs of five percent.
In addition, ASEAN food processors buy their sugar at the equivalent of P26 to P28 per kilo.
“While we agree that our farmers need some assistance, we can no longer justify coddling an industry at the expense of the greater majority of Philippine consumers and food manufacturing sector that are bearing the brunt of the high cost of this protection. This situation has likewise become a breeding ground for smuggling,” the groups said.
About 4,000 to 5,000 domestic food processors use sugar as an ingredient for their products.
These food processors are part of the country’s micro, small and medium enterprise sector.
Source: https://www.philstar.com/business/2018/10/05/1857326/business-groups-laud-lifting-non-tariff-barriers-agriculture#J2GfSgWpiMuJ1BXq.99