Group hits Palace move to cut tariff on some agri products

The Fair Trade Alliance (FTA) denounced yesterday the issuance by Malacañang of Executive Orders 485 and 487 which reduces tariffs on a range of agricultural goods.

According to former Sen. Wigberto Tañada, lead convenor of the FTA, the issuance of the EOs is a "sneak attack on Filipino farmers, directed in particular to our vegetable and fruit growers in the Cordillera, Central Luzon and Southern Tagalog regions."

EO 485 reduces the tariffs of 214 tariff lines to zero under the Early Harvest Program (EHP) starting Jan. 1, 2006.

EO 487 schedules the tariff reduction of 1,124 tariff lines included in the Normal Track of the ASEAN-China FTA.

According to the FTA, there were no effective and comprehensive consultations held.

If there was, Tañada said, "then it is unfortunate that against the persistent and relentless call of our local farmers and producers to delay the ratification of this free trade agreement, until and unless the government will show its boldness to safeguard the interest, income and livelihood of our farmers, the Philippine government still pursued the Early Harvest with China."

The FTA, as well as farmer groups in Benguet and Nueva Vizcaya, and a number of civil societies and business associations had expressed dismay over the decision of the Association of Southeast Asian Nations (ASEAN) for member countries to conclude an ‘early harvest’ agreement on agriculture with China preparatory to negotiations for a full-blown free-trade arrangement.

China, Tañada said, "is the single biggest source of dumped industrial and agricultural goods that are drowning our domestic market and are killing local producers."

He added that, "If there is any trade and economic agreement that should be concluded with China, it should be a normal bilateral one wherein China should be asked to make commitments to help the Philippines put an end to the flow of smuggled industrial and agricultural goods from Hong Kong and its southern coastlines."

In 2004, the government issued statements reassuring the nation that it was not prepared to conclude an "early harvest" agreement with China.

However, when Premier Hu Jintao visited the Philippines early last year, the government agreed to the EHP and announced the signing of an agreement a couple of months after.

In December last year, EO 485 was signed but its signing was announced only a month after.

The EO was not subjected to scrutiny by local farmers’ groups and no information on the draft EO was ever released.

The FTA is insisting that economic diplomacy with China should be focused on how to balance trade relations.

Tañada stressed that "we expect China to act as a good neighbor and to promote mutually-beneficial trading arrangements. It should also help the Philippines in cracking down on smuggling syndicates."

The FTA is also urging government authorities to be strict on the entry of agricultural goods coming from China, which is the world’s second biggest user of the GMO technology.

Up to now, Chinese farmers are still using the toxic DDT chemical which has been banned worldwide.

On top of this, the existing Pest Risk Analysis (PRA) is haphazardly done and therefore weak.

The FTA urges an immediate review to stop the entry of dumped and hazardous vegetable imports.

The FTA is appealing to the government to stop its reckless pursuit of free-trade arrangements with China and other countries without any consultation with the domestic producers and without a clear development framework in place.

"Trade should not be pursued for trade’s sake. Trade is an instrument for development, not a weapon of surrender. It should help preserve and promote jobs and businesses," Tañada said.

Finally, the FTA is urging Congress to assert its oversight function on trade negotiations and for the Senate to insist on its treaty-making authority.

The early harvest with China and the succeeding free-trade arrangement being negotiated should be subject to Senate treaty ratification.

The Fair Trade Alliance (FTA) is a broad coalition of formal and informal labor, industry, agricultural, non-governmental organizations, and youth pushing for trade and economic reforms.