Administrative Order 20 issued by President Ferdinand Marcos Jr., which removes non-tariff import restrictions to agricultural importation, will only benefit importers, said former agriculture secretary Leonardo Montemayor, saying it will have an adverse impact on agriculture, particularly the local fisheries and sugar industries.
Citing constraints that increase importation costs and limit the supply of farm goods, the President ordered the removal of non-tariff import restrictions through the issuance of AO 20. The AO also instructed the Department of Agriculture, Department of Trade and Industry, and Department of Finance to ease, among others, the procedures and requirements “in the licensing of importers, minimize processing time of application for importation, and exempt licensed traders from submission of registration requirements.”
Montemayor pointed out that in the case of sugar, there is a de facto import quota restriction where it needs the approval of the Sugar Regulatory Administration. For fisheries, importation is not allowed unless there is a certificate of necessity to import from the Bureau of Fisheries and Aquatic Resources.
He adds that AO 20 clashes with the Philippine Fisheries Code (RA 8550) and the Sugarcane Industry Development Act (RA 10659).
“In both cases, laws are being followed in the implementation of quantitative restrictions. The question is can an administrative order overrule existing laws, and second, what will be the impact on local fisheries and sugar production,” he added.
Montemayor said AO 20 has effectively removed the oversight functions of both the SRA and BFAR, but at the same time, provides no guarantee that the prices of food products will go down.
“What we know is that it will only benefit the importers. It will lessen the taxes they pay and they can easily import. It will also discourage our local producers,” he maintained, as he also warned that the AO could result in the flooding in the market of smuggled agricultural products.
He adds that government should increase the budget of the DA instead, if it wants to boost the country’s agricultural production.
The currently reeling sugar industry, which has suffered from low millgate prices, aside from the devastating effects of the El Niño weather phenomenon, is among the sectors that could be adversely affected if AO 20 is either abused or improperly implemented. Hopefully the government, particularly the SRA, that is supposed to be looking after the interests of the entire industry, and not just the importers, will continue to properly fulfill its mandate as restrictions to agricultural importation are lifted.*
