Administrative Order 20 to reduce food costs, says economist-lawmaker Joey Salceda

The recently signed Administrative Order 20, which removes non-tariff barriers to the import of agricultural products into the country, will certainly bring down food costs, which shot up slightly in March, economist-lawmaker Joey Salceda said on Sunday.

The Philippines has one of the highest levels of protection for its domestic goods, with a protection level of about 27 percent as a percentage of agricultural revenues of all agricultural goods, making it difficult for exporters to sell food to the country, Chairman Salceda said. of the House committee on ways and means.

“With such a level of trade protection, we should not be surprised why food is expensive in the country,” he said.

“Such levels of protection also do not directly benefit the agricultural sectors they are supposed to protect. They also embolden those who can ignore the law completely or ban domestic trade,” he added.

Apart from the Rice Competitiveness Enhancement Fund, veteran Solon claimed that there is no existing mechanism to directly support the domestic sector through tariff revenue.

“We hurt consumers with high trade barriers, but we also don’t directly support farmers with tariff revenues,” Salceda said.

The lawmaker predicted that the AO, signed by Executive Secretary Lucas Bersamin on April 18 but only made available to the media on Sunday, will poke holes in speculative fish price bubbles, which have a high level of non-tariff protection, such as the certificate of necessity to import.

“If fully implemented by the DA (Department of Agriculture), it will open up sugar imports to direct industrial users. That could end the stagnation of the food production sector,” Salceda added, noting that sugar prices in the Philippines remained the highest than those of its neighbors in ASEAN.

Under the AO, non-tariff barriers increase the cost of agricultural goods in the United States.

Non-tariff barriers, other than tariffs, restrict trade, including quotas, import licensing systems, regulations and red tape.

The AO orders the DA and the Ministries of Trade, Industry and Finance to take immediate measures to remove administrative restrictions and non-tariff barriers and further streamline procedures and policies related to importing agricultural products.