Philippines may allow more pork, corn imports at lower tariffs 

MANILA, Philippines – The Department of Agriculture (DA) is considering to use the minimum access volume (MAV) Plus mechanism to allow increased importation of corn and pork at lower duties.

Through the MAV Plus scheme, the government allows increased purchases of certain agricultural products at reduced tariff rates to help stabilize supply and prices.

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Agriculture Secretary Francisco Tiu Laurel Jr. said on Tuesday that the DA was looking at using the MAV Plus for pork and corn at this time.

“We will increase the import volume under the minimum access volume so it will not affect our farmers,” Tiu Laurel said on the sidelines of the subsidized rice sale launch in Makati.

The agriculture chief said the corn industry has agreed to the proposal, while the chicken industry has opposed it due to lower prices. Meanwhile, he said the DA was still discussing the matter with the pork sector “because we currently have overproduction.”

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“We might still propose and do the MAV Plus for chicken, but we will not trigger it unless necessary. It’s important to always be ready,” Tiu Laurel said.

It was noted that the local prices of chicken are still very low.

The final import volume under the MAV Plus mechanism will be determined through subsequent consultations. Tiu Laurel said the scheme could be implemented within three weeks if they agree on the import volume.

Common ground

“This will be determined and agreed upon through consultation because we will follow the recommendation of the industry to reach a common ground,” Tiu Laurel said.

He explained that the DA may adjust the allowable import volume under the MAV Plus scheme if the predetermined volume is insufficient.

“But as of the moment, we’ll take it from the industry as to what volume is acceptable to them,” he told reporters.

At the same time, Tiu Laurel said the DA has yet to decide on lifting the special safeguard duties (SSG) on chicken, noting that its policy group is currently studying the matter.

The government, through the DA, levies an SSG (or additional tariff) on imported agricultural products when actual import prices fall below a set trigger price. INQ

At present, imported corn under the MAV scheme faces a 5-percent tariff, while imports outside the quota are subject to a 15-percent duty.

The import duty on swine, fresh, chilled or frozen meat stands at 15 percent for in-quota volume and 25 percent for out-quota shipments.

Chicken imports are slapped with a 40-percent tariff rate for both in-quota and out-quota shipments.