January 26, 2023

Philippines extends pork tariff rates through 2023

Philippines extends pork tariff rates through 2023

By: Sydney Sheffield 

The Philippine government has extended the lower tariff rates on pork and other food items through 2023, to address supply chain issues and rising inflation. EO No. 171 temporarily reduces the Most Favored Nation tariff rates on pork (fresh, chilled, or frozen), corn, rice, and coal until December 31, 2023, and aims to stabilize the impact of inflationary pressures as a result of the Ukraine-Russia crisis, expand supply sources and reduce the prices of key commodities. Philippine President Ferdinand Marcos Jr. signed the Executive Order late in December 2022. 

“The National Pork Producers Council (NPPC) applauds Philippine President Ferdinand Marcos Jr’s announcement on the extension of lower tariff rates on pork and other food items. Gaining better market access to the Philippines has been a top trade priority for U.S. pork producers,” said Terry Wolters, National Pork Producers Council (NPPC) president and owner of Stoney Creek Farms in Pipestone, Minnesota. 

“We hope that the U.S. and the Philippines will continue to work toward establishing better market access through the Indo-Pacific Economic Framework. This comes at the heels of NPPC working with the U.S. and Philippine governments to work on the prevention and preparedness against the spread of African swine fever throughout the country and region. This extension is an essential component of the commitment of NPPC and the United States to Food Security for the Philippines.”

The reduced rates, implemented in mid-2021, cut the tariff on in-quota pork cuts from 30% to 15% and for out-of-quota shipments from 40% to 25%.  This means the country’s frozen pork inventory will further increase, bringing in cheaper imported pork. In October 2022, pork exports were up sharply in value with a 50% increase year-over-year. While the lower tariff rates have been extended through the end of 2023, Philippine officials say the rates will be reviewed quarterly. 

"There is a need to extend the effectivity of the reduced tariff rates on rice, maize (corn), coal, and meat of swine (fresh, chilled or frozen) to maintain affordable prices for the purpose of ensuring food security, help augment the supply of basic agricultural commodities in the country, reduce the cost of electricity, and diversify the country's market sources," President Marcos said.