Differences over meat threaten US-PH trade

American meat associations are said to be preparing a petition to exclude the Philippines from the list of developing countries benefiting from duty-free shipments of selected products to the United States.

In separate letters sent to US Agriculture Secretary Thomas J. Vilsack and Trade Representative Ambassador Ron Kirk, American meat industry stakeholders said that Manila’s policy limiting wet market access to frozen meat products “discriminates” against imported meat and, in effect, favors Philippine meat producers.

Representatives of the American Meat Institute, National Cattlemen’s Beef Association, National Meat Association, National Pork Producers Council, and US Meat Export Federation zeroed in on Administrative Order 22 (AO 22) issued by the Philippines’ Department of Agriculture.

According to the US trade groups, they have tried over the past year to express their concerns to authorities in Manila, but “the Philippines is not listening.”

In their letters to US officials, the American groups pointed out that the Philippines is a major recipient of tariff preferences on products entering the United States under the so-called Generalized System of Preferences, or GSP. At the same time, the Philippines has also expressed an interest in joining the Trans-Pacific Partnership negotiations at some point.

“The US meat industry would like to continue to support the US trade relationship with the Philippines,” the American groups said. “The prompt resolution of all these issues will undoubtedly enhance this important trade relationship.”

AO 22 mandates the refrigeration of meat products in Philippine markets. The policy exempts locally slaughtered meat, commonly referred to as “warm meat,” from the same requirement.

This, the American trade groups said, “has no basis in science and inherently discriminates against imported products,” the bulk of which are frozen or chilled items.

But according to Davinio Catbagan of the Philippines’ Department of Agriculture, the country continues to engage the United States and Canada, both meat exporters, in consultations and is even improving on regulations using inputs from five public consultations.

Catbagan also stressed that the Philippines has sent two letters to US Ambassador Harry Thomas, the latest of which was dated January 17, asking the United States to send technical people to the Philippines to see the actual conditions in local markets.

In early November, the US groups noted, the Philippines, “for no explained reason,” stopped issuing import permits for pork and beef. A direct expression of concern coursed through diplomatic channels resulted in the resumption of issuance of permits.

But the rate of issuances reportedly slowed to a trickle in recent weeks. As a result, applications now take weeks to get approved, threatening US meat shipments that are in transit to Manila.

The trade groups also highlighted the slowness in the issuance of import permits, as well as “test and hold” requirements, hampering deliveries and disrupting local market sales.

“To our knowledge, there have been no recent food safety related events that would justify the Philippines’ new test and hold policy. There have certainly been no such incidents related to US pork and beef entering the Philippines. The test and hold policy is yet another unwarranted Philippine trade restriction that is certain to have a negative impact on imports of US meat,” the US groups said.

Given the disruptions and the lack of refrigeration available in Philippine markets for meat products, full implementation of AO22 will have a “devastating impact” on US meat sales in Manila, the American groups said.

But because the Philippines does not exercise its GSP privileges that much, it remains to be seen whether local authorities and traders will feel the sting of losing the US duty-free perks.

The Philippines cannot at the moment export fresh bananas to the United States. Still, Manila traders are fearful that, since the “science” imposed by local regulators on meat products are being questioned, other regulations and phytosanitary certifications being sought for products to be shipped to the United States may be jeopardized.

The Philippines exports about $1.5 billion worth of agriculture and food products to the United States annually, according to industry data. All these are now at risk, Manila traders said.