Hog, poultry raisers laud DA move

MANILA, Philippines - Hog, poultry farmers and Partylist groups expressed their full support yesterday on the commitment of the Department of Agriculture not to use the livestock and poultry sectors as “bargaining chips” in negotiating with the World Trade Organization (WTO) for the extension of the country’s quantitative restriction (QR) on rice.

Daniel Javellana Jr., chairman of the National Federation of Hog Farmers Inc., in a statement said their group fully supports the position of the Aquino administration not to sacrifice the group the WTO negotiations.

Swine Development Council convenor and Party-list group Abono chairman Rosendo So echoed the support to Agriculture Secretary Proceso Alcala’s position not to use the livestock and poultry sectors in negotiating with the WTO.

So said Alcala assured stakeholders that the interest of the local livestock and poultry sectors would not be part off the WTO negotiations.

Because of this, the SDC and Abono official thanked Alcala for strongly advocating for the interest of the agriculture sector which is considered to be “the primary engine of economic growth of the people in the countryside.”

To stave-off a flood of imported rice, the Philippines is currently in talks with the WTO and is trying to convince the trade body to extend the limits on the importation of rice, known as “quantitative restrictions” (QRs), which have been enjoyed by country since June 2006.

The restrictions on rice imports which ended last June 30, 2012 had allowed the Philippines some control in protecting local rice producers and consumers from the influx of imported rice by allowing the government to impose higher tariffs on rice imports beyond a certain volume.

The United States, however, has opposed the Philippine government’s bid for extending the restriction on rice imports until 2015 with the Americans claiming that Philippine regulations on imported meats already pose a threat to US exports of pork into the country. More than half of the Philippine’s pork imports come from the United States and Canada.

The US wants the Philippine’s Department of Agriculture to rescind its administrative orders on the handling of frozen and freshly slaughtered meat, which the Americans claim, are heavily lopsided against imported meat products.

Earlier reports said the DA offered the mechanically deboned meat (MDM) tariff for hog and poultry during international trade talks to extend the QR on rice until 2017. Easing the tariff on imported meats would seriously endanger the local backyard hog raisers, So warned.

“We categorically and formally state our opposition to this reduction in tariff rates as a trade off for extension of the rice special treatment (ST)/quantitative restriction (QR). Any reduction in the current tariff rates will substantially affect the viability of the hog industry,” Javellana said in his June 11, 2012 letter to Secretary Alcala.

“This will mean prime cuts can be imported legally and sold in wet markets at 25-35 percent less than locally sourced meat,” he added.

Local farm groups also want the government to restore the tariff on imported pork offal to 40 percent, saying a 40 percent rate would discourage pork smuggling.

Intentionally declaring prime meat as offal to avail of lower tariffs has been a modus operandi of meat smugglers, So lamented.

“We strongly appeal to you not to use the livestock and poultry sector as a bargaining chip in the renegotiation for qualitative restriction on rice,” So said.

So urged the government not to succumb to the pressure and bullying of the US government.

“It can be noted that we are importing from Vietnam and Thailand as mandated by our agreement with ASEAN Free Trade Area (AFTA) where it was stipulated that from 2010 until 2014, the tariff for rice is 40 percent, and on 2015 down to 35 percent. Why is the US and Canada trying to tie up livestock and pork, when the Philippines is not getting its rice from them?” he asked.

So also points out that Canada does not produce rice, while Australia is not even considered a rice producing country as it was able to produce only 726,000 metric tons in 2011.

“What is laudable is the gesture of goodwill shown by China and Cambodia who agreed to extend the QR on rice, without anything in exchange unlike US and Canada,” So said.

The quantitative restrictions (QR) on rice allow the Philippines to impose higher tariffs on rice imports beyond the minimum access volume (MAV) of 350,000 metric tons under the WTO-Agriculture. Imports of rice within the MAV are subject to a 40% duty, while imports in excess are subjected to 50 percent rate.

Among the countries with interest on the rice trade are the US, Canada, China, Thailand, Vietnam and Cambodia.