Subic, Clark agree to ban import of chicken parts

The special economic zones at Subic and Clark have agreed to ban the importation and sale of chicken parts at duty-free outlets to help save the local poultry industry which is now on the brink of extinction due to rampant smuggling and dumping of cheap poultry products, especially from the United States.

Agriculture Secretary Edgardo Angara announced that the leadership of the Subic Bay Metropolitan Authority (SBMA) and the Clark Special Economic Zone (CSEZ) have signed separate agreements with the Department of Agriculture to implement the ban.

SBMA chairman Felicito Payumo and CDC president Sergio Naguiat, who signed on behalf of their agencies, also pledged 'full and unwavering support' to the efforts of the Department of Agriculture to stop the dumping of leg quarters and other chicken parts into the country, mostly through the duty-free shops.

"They know the sensitive role of the poultry industry in the local economy. They too have the political will required to stop the ruinous dumping of chicken parts," Angara said.

The Agriculture secretary ordered a ban last week on the importation of chicken parts, and instead allowed only the entry of whole chicken. This directive, Angara emphasized, does not violate the country's commitment to free trade and the World Trade Organization (WTO).

Late last year, the DA also issued an order banning duty-free imports of chicken, after some duty-free stores were found to be selling these chicken in bulk to suppliers in Metro Manila. However, poultry raisers discovered recently that duty-free importation of chicken is still being allowed.

In addition, local poultry producers noted that even if the importers pay the proper tariffs, the chicken parts will still come in very cheap.

The Philippine Association of Broiler Integrators (PABI), composed of the country's seven biggest integrated poultry operations, and the United Broiler Raisers Association (UBRA), earlier said the United States has been dumping leg quarters into the country at prices way below US domestic selling prices and Philippine cost of production.

They said US poultry producers are now finding alternative markets for 'red meat' since the health-conscious Americans now prefer 'white meat' or the breast part of the chicken.

At a tariff rate of 50 percent, US leg quarters are coming in at P34 to P37 per kilo.

And because of the continued dumping of cheap chicken parts, domestic poultry raisers said it won't take long before the industry dies.

Angara also warned that chicken coming from the US may be 'unsafe' due to the long time it takes for the chicken to be shipped to the Philippines.