Groups push for liberalization of farm sector
Farmer sorting his palay harvest. Image from the Department of Agriculture website.
A group of economists and certain business organizations have urged agricultural stakeholders to allow the further opening of the sector by welcoming the entry of foreign trade and investments in the country.
The Foundation for Economic Freedom (FEF), an organization that advocates market-friendly reforms, said this would increase the availability of safe and affordable food to all Filipinos, and create more opportunities for the rural population.
The statement came after groups of agricultural producers protested the Duterte administration’s decision to reduce the tariffs for rice and pork.
FEF said liberalizing the agriculture sector would benefit the country three-fold.
“First, in times when local food production falls short of demand, imported food helps to dampen food price inflation which eats up the purchasing power of Filipino consumers. Second, predictable imports encourage investments in downstream industries to diversify and grow in situations that local agricultural inputs are inadequate for their requirements. Finally, the competition that local producers face from imported products has the potential of introducing innovations in local agriculture, needed for stronger and competitive growth,” it said.
It also called on officials to repeal laws, regulations and other “unnecessary measures” that discourage the entry of foreign investments into the country, stressing that these investments “are necessary to intensify and diversify agricultural production and introduce technologies that would enhance the comparative advantage of the sector’s products.” INQ
