The Marcos administration has extended the most favored nation tariff cuts on rice, corn and pork until 31 December 2024, the National Economic and Development Authority said on Thursday.

In a Malacañang press briefing, NEDA Secretary Arsenio Balisacan said the extension aims to ensure adequate supply, stabilize prices and mitigate potential inflationary pressures in the country.

Under the proposed Executive Order, tariff rates for pork will remain at 15 percent in-quota and 25 percent out-quota, while corn will be maintained at 5 percent in-quota and 15 percent out-quota. The 35 percent tariff for rice will apply to both in-quota and out-quota imports.

Balisacan said that the reduced tariffs will "encourage alternative supply sources, diversify our market options, and build a more resilient trade policy."

"This extension will help mitigate the impact of the African Swine Fever, anticipated El Niño and rising global commodity prices on domestic food security and affordability," Balisacan said.

"Lower tariffs will encourage alternative supply sources, diversify the country's market, and enable us to respond effectively to future supply and price shocks," Balisacan added.

The group known as the Inter-agency Committee on Inflation and Market Outlook previously proposed prolonging the reduced tariff rates outlined in EO No. 10, set to lapse by 31 December 2023.

The committee, established by President Marcos, focuses on formulating plans to minimize inflation in the nation and ensure it stays between the government's aimed range of two to four percent.

On the other hand, the NEDA Board also approved a shift from a semestral to an annual review period for the coal tariff rate.

However, the review of tariffs for pork, corn, and rice will remain semestral to ensure continued responsiveness to market fluctuations and potential price spikes.

"We will also be able to encourage alternative supply to diversify the country's market sources and establish a forward-looking trade policy that will allow effective and timely response for possible supply and price shocks brought about by major challenges such as the worsening African Swine Fever or ASF, anticipated impact of the El Niño phenomenon and continuous increases in commodity prices in the world market," Balisacan said.

This decision comes amid concerns about rising inflation, with food prices being a major contributor. The extension of lower tariffs is expected to help alleviate pressure on consumer wallets and support the government's efforts to manage inflation.