The United States and Australian governments have both warned the Philippine agriculture department that it faces a possible violation of international trade rules due to a recently issued administrative order that seeks to curb the entry of meat products into the country.
Agriculture Secretary Edgardo Angara recently issued Administrative Order No. 16 which imposes stricter requirements on the importation of meat products.
An official of the US Embassy here told The STAR that the new rules involve so much paperwork that it will be extremely difficult for prospective importers to meet them.
"I'm telling you, AO 16 is a violation of WTO (World Trade Organization) rules," the official said.
Australian trade officials, during a recent meeting with agriculture officials, also raised concerns regarding the administrative order, saying it may be a form of trade barrier.
But Agriculture Undersecretary for Policy and Planning Arsenio Balisacan, who met with the Australian officials led by David Spencer, deputy secretary for foreign affairs and trade, said the new AO merely incorporates all existing rules regarding meat imports.
He also assured the Australians that they are not the only ones affected by the new issuance. The Philippines imports beef and live cattle from Australia, although the volumes have significantly gone down this year due to a boycott on Australian farm goods initiated by Angara in retaliation for Australia's refusal to approve the Philippines' proposal to export tropical fruits.
It is widely believed that AO no. 16 was issued to curb the entry of Australian meat products. Whereas before, the issuance of a veterinary quarantine clearance (VQC) rests mainly on the National Meat Inspection Commission, now the Office of the Secretary is closely involved.
AO no. 16 specifies the rules on securing import permits, inspection requirements, and disposition procedures in case of unauthorized shipments.
It requires importers to apply for a VQC for every 24-metric ton shipment equivalent to one container van. This is in addition to the sanitary and phytosanitary (SPS) certificate which the importer has to secure as required by AO no. 18.
An SPS certificate is a prior import permit which certifies that a local importer is sourcing the goods from an accredited foreign supplier that meets the health and safety requirements of the government.
On the one hand, the VQC, which is more specific, is an import permit which certifies that an exporter has passed the health and safety requirements of the Philippine government.
Shipments not accompanied by such certificates will be considered illegal and subject to government disposition through destruction of goods, re-export, among others.