MANILA – The National Economic and Development Authority (NEDA) announced that President Marcos has extended the temporary reduction of tariffs on key agricultural products to mitigate the impact of the El Niño phenomenon on consumer prices.
NEDA Secretary Arsenio M. Balisacan said Malacañang has given the green light for the extension of the reduced most favored nation (MFN) tariff rates on agriculture commodities, including pork, corn, and rice, under Executive Order No. 10, until Dec. 31, 2024.
Originally set to expire on Dec. 31, 2023, EO 10 has been recommended for a one-year extension by the economic managers, including Balisacan.
The tariff rates for swine meat imports were maintained at 15 percent for shipments within the minimum access volume (MAV) quota and 25 percent for those exceeding the quota.
Similarly, the rates for corn remained at five percent (within the MAV quota) and 15 percent (exceeding the MAV quota), while the tariff rate for rice stayed at 35 percent in both scenarios.
Balisacan said the tariff rates on pork, corn, and rice will be reviewed in a semestral basis.
“The proposed extension of reduced tariffs will help ensure an adequate supply of agricultural commodities and maintain stable and affordable prices, thereby better managing potential inflationary pressures,” the NEDA chief said.
President Marcos also maintained the duty-free status for coal imports, but altered the assessment frequency for the coal tariff rate from semi-annual to an annual basis.
On Wednesday, Balisacan expressed concerns about the potential impact of the El Niño phenomenon on next year’s commodity prices.
This statement followed Science and Technology Secretary Renato Solidum Jr.’s warning on Tuesday that at least 65 provinces in the country could face drought conditions due to El Niño.
Balisacan said the Inter-Agency Committee on Inflation and Market Outlook (IAC-IMO) will be closely monitoring the situation and utilizing various government tools, including trade policy measures, to minimize the negative effects of El Niño.
He emphasized the government’s commitment to intervening promptly and effectively to mitigate the price spikes associated with the expected drought.
In November, inflation, which gauges the pace of price hikes for goods and services, slowed to its lowest level in 20 months due to a reduced uptick in food and transportation expenses.
The earlier high inflation, which led to increased interest rates, was held responsible for the sluggish economic growth in the second quarter of the year.
However, economic growth rebounded to 5.9 percent in the third quarter, attributed to the government’s increased expenditure, which counterbalanced the decrease in household spending during that period.
