MAP pitches tariff reforms for agri-food value chains

THE Management Association of the Philippines (MAP) wants the government to reform the tariff structure of the Philippines in a way that strengthens sustainable agri-food value chains, especially domestic agricultural value-adding enterprises including processing, storage, and logistics, among others.

I n particular, the business group advocated a rational tariff structure where tariff rates on inputs do not exceed those on finished products.

I n a position paper dated August 3, 2023 but distributed to reporters on August 15, MAP said the government should review and reform the tariff structure of the Philippines amid the ongoing move by the Tariff Commission (TC) and the National Economic and Development Authority (Neda).

A mong its recommendations: come up with a tariff structure that supports food security for Filipinos, especially accessibility and affordability of competitivelypriced food, via low tariffs on food products.

M AP said the country’s tariff structure should be “neutral” across industries and avoid distortions and unwarranted protection aris - ing from tariff peaks, currently seen primarily in agricultural products.

T he business group also underscored the importance of reducing incentives and opportunities for corruption and smuggling by “unifying” Minimum Access Volume (MAV) and non-MAV tariff rates, and keeping tariffs relatively low and uniform across all goods (with a maximum 10 to 15 percent) to keep food prices affordable, especially to the poor.

I n the position paper signed by MAP President Benedicta DuBaladad and MAP Cluster on Resilience and Recovery Governorin-Charge (GIC) Cielito F. Habito, MAP stressed that Trade enhances food security.

It improves access to food, lowers food costs, mitigates supply shocks, reduces inflationary pressures, and ultimately strengthens economic and social prosperity,” MAP said. High tariffs, it noted, have long been shown to be “counterproductive, and lead to reduced investment, low or stagnant wages, and higher rates of malnutrition.”

Moreover, using protective trade policy to help farmers causes “unwanted collateral damage” to the much wider mass of consumers, especially the poor who suffer the long-term consequences of highpriced food, MAP said.

Moving forward, MAP said the positive economic gains to greater trade must be accompanied by “effective implementation” of focused adjustment and assistance measures carefully aimed at adversely affected sectors, especially small farmers.

Government must refocus its support and assistance to farmers from high levels of trade protection to effective improvement of productivity and competitiveness,” MAP said.

“

In sum, removal of existing peaks and achieving low uniform rates in a tariff structure that provides equal incentives across domestic industries will encourage more and wider agricultural processing and value-adding, help control inflation, and enhance the country’s food security. We urge the TC and Neda to move the Philippine economy in this direction,” it added. Andrea E. San Juan

PANEL-CRAFTED MUP BILL SEEN ‘ACCEPTABLE’ TO ALL PARTIES

THE Ad Hoc Committee on the MUP Pension System on Tuesday approved the Military and Uniformed Personnel (MUP) reform bill that is now “acceptable” to all stakeholders, including the Armed Forces of the Philippines and the Philippine National Police, as well as economic managers.

A lbay Rep. Joey Sarte Salceda, the panel chairman, and Speaker Ferdinand Martin Romualdez described the reform bill as “win-win solutions.”

“ We are pleased to report to the President and to the public that

Meralco sells e-vehicle unit ESakay for ₧87.4M

THE Manila Electric Co. (Meralco) sold its electric vehicle (EV) unit, ESakay Inc., to On-Us Solutions Inc. for P87.4 million.

Please be informed of the sale of ESakay, Inc., a wholly owned subsidiary of the Company, to On-Us Solutions, Inc. with the total consideration of P87.4 million as stated in the share purchase agreement dated August 15, 2023,” Meralco said in a disclosure.

On-Us is a jeepney modernization platform under MPT Mobility Corp., a subsidiary of another Pangilinanled firm Metro Pacific Tollways Corp. (MPTC).

No other details were provided.

we have formalized a solution to the MUP Pension problem. The members of the Ad Hoc Committee on the MUP Pension System have agreed in principle on an MUP Pension Reform that is amenable to both the military and uniformed services and to the economic managers,” Salceda said.

“ This is a win-win solution, because we are removing the risks of sudden spikes in pension liabilities while also ensuring that salaries and pensions increase at manageable levels,” Salceda added.

Continued on A4

A ccording to a source, Meralco wants to focus on EV charging stations instead. “ESakay has an e-jeepney route franchise from LTO [Land Transportation Office] for Makati -Mandaluyong route and Meralco wants to concentrate on providing charging stations so the company was sold,” the source said.

L ast March, Meralco announced that it formed a new subsidiary, Movem Electric Inc., to hasten the EV adoption in the country.

A s of October last year, there are around 9,000 registered EVs, of which 378 are public utility vehicles (PUVs), while 276 charging stations have already been deployed nationwide.

T he Department of Energy is currently pushing to ramp up the EV rollout to 10 percent of all vehicle fleets from five percent as required by RA 11697 or the Electric Vehicle Industry Development Act. Lenie Lectura

Editor: Jennifer A. Ng