Lawmakers on Monday filed two resolutions calling for an inquiry into the impact of World Trade Organization (WTO) policies and programs on the local vegetable, livestock and poultry sectors.
The Makabayan bloc filed House Resolutions (HR) 796 and 797 directing the House Special Committee on Globalization and WTO to conduct the investigation. Lawmakers wanted to look into the impact of WTO policies on the local farm sector amid government efforts to amend Republic Act (RA) 8178, which converted import caps or quantitative restrictions, on farm commodities with tariffs.
“Tariffs on vegetables have been reduced since the 1980s, when the government embarked on the comprehensive liberalization program under the country’s Structural Adjustment Program [SAP],” HR 796 read.
The Makabayan bloc noted that the Ramos administration passed RA 8178, which replaced quantitative restrictions on almost all agricultural products with tariffs that would be reduced within 10 percent to 50 percent by 2003.
“[RA 8178] also amended the Magna Carta for Small Farmers, which restricted agricultural imports that competed with local produce, and RA 1296, which banned the importation of regulated vegetables except for seeding purposes,” HR 796 read.
Citing data from the Philippine Statistics Authority (PSA), the lawmakers noted that the total production of 25 vegetables from 2011 to 2016 rose by 58 percent to 1.5 million metric tons (MMT) from the levels recorded during the pre-WTO period of 1990 to 1994. But imports also rose by 63 percent during the same period.
The Makabayan bloc said local vegetable growers have complained of losses as imported vegetables started flooding local markets after the country acceded to the WTO in 1995. Lawmakers said big businessmen found it cheaper to import highland vegetables from China, Taiwan and other countries.
Farmers, they said, have complained that cheap agricultural imports have become a main threat to their livelihood, complicating the problems they are currently confronting like the lack of support services and high cost of production.
As for the livestock and poultry sector, the lawmakers said in HR 797 that hog raisers and poultry growers have also incurred losses due to country’s accession to
the WTO.
Before the Philippines became a member of the WTO, the lawmakers said the country’s livestock and poultry sectors were “quite self-sufficient and self-reliant”.
“After we became a member of the WTO, the importation of livestock and poultry products has increased with the country gravitating toward dependency on imports,” they said.
Lawmakers said that from 1995 to 2014, the Philippines imported 24,572,482 heads of live animals and 4.2 MMT.
They also noted that the country increased its purchase of imported dairy products and meat by 67.47 percent and 797.53 percent, respectively, from 1995 to 2013.
“Because of the influx of cheap imported livestock and poultry products in the domestic market, local livestock and poultry raisers are forced to bid low and under-price their produce,” HR 797 read.
“Since they cannot compete with imported livestock and poultry products, local dealers compete with one another through pricing wars in which dealers in one province out-price dealers of another province while imported livestock and poultry products hold sway in the market,” it added.
According to the lawmakers, many hog raisers have stopped production since they are forced to sell directly at low prices or they simply slaughter their breeders after giving birth to avoid incurring big losses.
The two resolutions were filed by Anak Pawis Rep. Ariel Casilao, Bayan Muna Rep. Carlos Isagani Zarate, Gabriela Reps. Emmi de Jesus and Arlene Brosas, Act Teachers Reps. Antonio Tinio and France Castro and Kabataan Rep. Sarah Jane Elago.
Image credits: Bloomberg