SC asked to issue TRO against tariff reduction on rice

FARMERS on Thursday asked the Supreme Court (SC) to issue a temporary restraining order (TRO), freezing an executive order (EO) of President Ferdinand R. Marcos Jr., which had reduced the tariff on rice imports from 35% to 15% .

The signatories of the TRO petition, Samahang Industriya ng Agrikultura, Federation of Free Farmers (FFF), United Broiler Raisers Association, Sorosoro Ibaba Development Cooperative and Magsasaka Party-list, argued that their right to be consulted had been violated and that the lowering the TRO petition Tariffs would threaten their livelihoods.

They also alleged that the EO had not adhered to the specified tariff reduction procedure in the Customs Modernization Act.

Executive Order No. 62 was issued on the recommendation of the National Economic and Development Authority (NEDA) and later implemented by the Tariff Commission.

“This Executive Order was hastily issued without consultation, investigation, hearings and reports – which are required by… the Customs Modernization and Tariff Act (RA 10863), which must be complied with before the President may validly issue an Executive Order with regarding tariff reduction,” the 27-page petition said.

The petition also claimed that farmers have constitutional protections against unfair competition and trade practices.

President Marcos issued the order to soften the impact of inflation and make the staple grain more affordable.

In a statement, NEDA Secretary Arsenio M. Balisacan said: “We are currently awaiting the receipt of the petition and would like to express our utmost respect for the legal process. Please be assured that NEDA, through the Office of the Solicitor General, will respond appropriately in due course.”

The Tariff Commission had not responded to an email seeking comment by deadline.

“Before the EO was issued, the Philippines was forecast to import approximately 4.1 to 4.2 million tons of rice. With this new EO (we’re looking) at 4.6 MMT. Our rice imports last year amounted to 3.6 million tons, former Agriculture Minister and FFF National President Leonardo Q. Montemayor told reporters at the filing.

The Department of Agriculture’s (DA) own projection is 3.9 million tons of imported rice this year. The highest estimate of 4.6 million tons was issued by the U.S. Department of Agriculture, which specifically cited lower tariffs and increased consumption in upgrading its previous forecast.

The petition to the tribunal states that cutting tariffs on staple foods such as rice and corn will undermine farmers, who will face imported competition, weakening their incomes.

“As a result, their livelihoods and the agricultural sector in general may suffer, which could worsen rural poverty and (increase) economic inequality,” the petitioners added.

Mr Montemayor added that over-reliance on imported rice risks preventing farmers from continuing their trade.

“We expect that many farmers will no longer grow rice, especially next season. We estimate that approximately 500,000 farmers… will no longer plant. Or, if they plant, they will significantly reduce their production. So food security will be seriously jeopardized,” he said.

In a separate briefing on Thursday, DA Assistant Secretary Arnel V. de Mesa said a successful TRO petition would negatively impact efforts to build rice reserves.

“It will slow down our private importers… (and) our national rice supply would be affected… There would also be a delay in reducing rice prices if the TRO were granted,” Mr De Mesa said.

Well-milled rice sold for between 52 and 55 euros per kilo in markets in the capital region, while regular rice fetched between 47 and 51 euros per kilo, DA price monitors said on July 3.

Rice imports in the first six months of 2024 totaled 2.28 million tons, the Bureau of Plant Industry said last month.

Finance Minister Ralph G. Recto said last month that the government will lose up to 22 billion euros in revenue as a result of the tariff cut.

He described the move as a “short-term one,” citing the need not to be overly dependent on imported rice.

Leonardo R. Abella, a 53-year-old farmer from Rosales, Pangasinan, joined during the filing of the petition.

“There is nothing left for us. We already have debts, then prices will fall again…. We’re getting even poorer. Everything we buy for field use is expensive. Therefore, there is nothing left for us,” he said Business in Filipino.

He added that if policies that are unfriendly to farmers continue, farmers could eventually disappear. — Chloe Mari A. Hufana