President Ferdinand "Bongbong" Marcos Jr. is set to order the extension of the temporary modification of the rates of import duty on select agricultural products, Malacañang announced on Sunday.

Press Undersecretary Cheloy Garafil, in a statement, said the President is expected to issue an executive order directing the extension upon the recommendation of the National Economic and Development Authority in a bid to address supply issues and temper inflation.

Executive Order 171 states that the implementation of the reduced tariff rates shall be extended until 31 December 2023, which was originally set to 31 December 2022 by former President Rodrigo Duterte.

The endorsement by the Board's Committee on Tariff and Related Matters was approved during the NEDA Board meeting presided over by the President, who also chairs the Board, on 16 December.

According to NEDA, EO 171, which temporarily reduces the Most Favored Nation tariff rates on the meat of swine (fresh, chilled, or frozen), maize, rice and coal until 31 December 2023, aims to mitigate and stabilize the impact of inflationary pressures, which Malacañang believes is a result of the ongoing conflict between Russia and Ukraine.

EO 171 extends the reduced rates of duty on the following commodities: Meat of swine, fresh, chilled, or frozen at 15 percent (in-quota) and 25 percent (out-quota); corn at 5 percent (in-quota) and 15 percent (out-quota); rice at 35 percent (in-quota and out-quota); and coal at zero duty, according to Garafil.

Socioeconomic Planning Secretary Arsenio Balisacan previously said the extension will "provide relief to poor and vulnerable segments of the Filipino population whose welfare is reduced because of high inflation."

"Through this policy, we shall augment our domestic food supplies, diversify our sources of food staples, and temper inflationary pressures arising from supply constraints and rising international prices of production inputs due to external conflict," Balisacan said.

Republic Act 10863, otherwise known as the "Customs Modernization and Tariff Act," empowers the President, in the interest of general welfare and national security, and upon the recommendation of NEDA, to increase, reduce or remove existing rates of import duty.

Based on the Board's recommendation, the reduced tariffs on the meat of swine, corn, and rice shall revert to their original rates after 31 December 2023.

The zero duty on coal shall be applied beyond 31 December 2023.

Balisacan is optimistic that the Philippine economic conditions would be favorable in 2023 considering that the administration now expects the "reopening of China's economy, moderating global oil prices, easing of aggressive monetary policy tightening, and sustained remittance inflows."

"We are determined to steer the Philippine economy to meet the 6.0 percent to 7.0 percent economic growth target for 2023, as set by the NEDA Board's Development Budget Coordination Committee," he said.

Farmers oppose extension

Farmers' group Samahang Industriya ng Agrikultura on Sunday said it is a "sad day" for the agriculture sector after President Marcos approved the reduced tariff rates on agricultural products extension until the end of 2023.

"Only a few privileged importers and traders have benefitted and will continue to benefit in extending the EO, not the producers, not the consumers, not the government," SINAG Executive Director Jayson Cainglet explained in a statement.

"We would (rather have the) government support local producers instead of incentivizing a few privileged importers and farmers/raisers of other countries," he added.

Coal imports will remain duty-free after 2023.

Over the weekend, Socioeconomic Planning Secretary Arsenio Balisacan said the extension would help vulnerable groups affected by high inflation.

"We are determined to steer the Philippine economy to meet the 6.0 percent to 7.0 percent economic growth target for 2023, as set by the NEDA Board's Development Budget Coordination Committee or DBCC," Balisacan pointed out.

The NEDA chief added the Philippine economy should rebound soon due to China's planned reopening, lowering global oil prices, lessening monetary policy tightening, and continuous remittance inflows.

TIZIANA CELINE PIATOS @tribunephl_tiz