Philippines extends pork tariff rate cuts, but challenges remain

Philippine President Ferdinand Marcos Jr. recently issued an executive order extending reduced tariff rates on a range of imported products, including pork cuts, through 2028.

The in-quota rate for pork cuts imported under the Philippines’ Minimum Access Volume quota will remain at 15% (down from the usual 30%) through the end of 2028. The out-of-quota rate will remain at 25% – down from the usual 40%. Most U.S. pork enters the Philippines out of quota, and thus at 25% duty. The lower rates have been in place since mid-2021, when the Philippines reduced import duty rates in an effort to bolster pork supplies and stabilize prices as its domestic industry dealt with the impact of African swine fever. Since 2021, the rate reductions have been extended at the end of each calendar year, but this is the first multi-year extension.

“The four-year extension is definitely a step in the right direction, as it adds a level of certainty for both importers and foreign suppliers, and eases the burden on consumers,” said Erin Borror, U.S. Meat Export Federation vice president for economic analysis. “But while U.S. exporters are pleased with the executive order, 25% is still a formidable duty in this price-sensitive and highly competitive market.”

The decision to reduce tariff rates came despite considerable pushback from domestic pork producers who view imports as a threat to their industry. But as USMEF pointed out in comments submitted last year to the Philippine Tariff Commission, countries such as South Korea have seen domestic production thrive amid rising imports as imported pork helps stabilize prices and makes pork more readily and consistently available, leading to sharp increases in consumption.