Respond to rallies and recommendation for reform
Our government should respond quickly and effectively to private-sector rallies and recommendations for reform. This is consistent with what former President Benigno Aquino Jr. told the private sector: “Ikaw ang boss ko.”
Here are two examples from the agriculture and industry sector of how government action could have been more responsive to current private-sector initiatives, but failed. The result has been disastrous.
Agriculture
On Oct. 23, 1,500 hog raisers participated in a rally outside the Department of Agriculture (DA) headquarters in Quezon City. They objected to the excessive pork imports that were bringing down their farm-gate prices and threatening their livelihoods. The desired action was for the government to restore pork tariffs at 30 percent for imports within the minimum access volume, and 40 percent for the rest (30 percent/40 percent).
This is much higher than the current 15-percent/25-percent tariffs. Actually, this supports the initial position of Agriculture Secretary Francisco Tiu Laurel Jr. However, he was outvoted by the government’s other economic managers.
Largely because of this, farm-gate price was recorded at only P150 per kilogram last August. This is much lower than the P195-per-kg production cost. During the Oct. 12 hearing at the Tariff Commission, the price was reported even lower—ranging from P110 to P120 per kg in many areas.
Fortunately, the DA reported that it would initiate a “motu proprio” safeguard investigation on the increased pork importation. The report stated: “The Secretary of Agriculture found convincing prima facie evidence of increased imports of pork causing injury to the domestic pork industry.”
Unfortunately, this action is very late, considering that so much harm has already happened. Perhaps it is partly because the DA staff did not follow his directive that he should be apprised of the recommendations of the private sector-led Philippine Council for Agriculture and Fisheries (PCAF) committees.
Early this year, the PCAF Committee on International Trade (CIT) was already asking for DA action on these low tariffs. Seeing little action, the CIT unanimously passed a resolution on June 18 “recommending [for the] DA to consider motu proprio action for the restoration of pork tariff levels to protect the swine industry.” This resolution was not forwarded to Tiu Laurel.
Four months later, in its Oct. 15 report, the DA confirmed what the private sector was warning about. It is finally proceeding with the moth proprio action. Pork importation is now 66 percent higher than the 2021 to 2025 average. Imports entered the market at prices below the equivalent of domestic pork at margins “ranging from 58 percent to 66 percent during 2021 to 2026.”
This is very significant, considering the very low 15-percent/25-percent tariffs today is extremely inadequate protection from cheap imports. In fact, pork producers have officially stated estimated losses of P22.5 billion over 90 days.
The private sector now wants Tiu Laurel to immediately act on his own and use his legislated power from the Republic Act No. 8800, or the Safeguards Measures Act, to issue provisional safeguards. This is needed for the pork industry’s survival.
Industry
On Sept. 13, at the Building for Resilience, Innovation, Cooperation and Sustainability Summit in New Delhi, India, President Marcos likened the proliferation of substandard steel manufacturers to the expansion of Philippine offshore gaming operators or Pogos. Since this recognition is late, perhaps the staff of both the Department of Trade and Industry (DTI) and the Office of the President did not communicate this issue effectively to him much earlier.
The DTI official monitoring report of substandard steel bars shows a violation rate of less than 5 percent. However, monitoring by the private-sector Philippine Iron and Steel Institute shows a much higher violation rate: 52 percent in 2024, 54 percent in 2025 and 70 percent in 2026.
For effective enforcement, the DTI has earlier agreed with private-sector recommendations for strong action. But forces outside the DTI have succeeded in stopping the agency from pursuing these initiatives.
Retail outlets are now charged in court, but not the manufacturers that supply them with the substandard products. From January to May this year, 150 retailers were charged. However, only one manufacturer was haled to court. This problem exists for many safety-related products, such as cement and liquid petroleum gas.
It is more than six weeks since Mr. Marcos identified this critical product standard enforcement issue. The government must now respond immediately and effectively to private sector rallies and recommendations for reform. This is the only way we can achieve the better future envisioned in the Bagong Pilipinas that we are all hoping and working together for.
The author is Agriwatch chair, former secretary of presidential flagship programs and projects, and former undersecretary of the Department of Agriculture and the Department of Trade and Industry. Feedback at [email protected]
