Early publication of 2006 tariff schedule not possible

Industry and business planners may have to rely on 2005 tariff rates at least for the first quarter or the first half of 2006 as the technical committee of the Cabinet-level Tariff and Related Matters (CTRM) has not yet finished its own review of the earlier submitted comprehensive overhaul done by the Tariff Commission.

According to Tariff Commissioner Edgardo Abon, the technical committee of the TRM is still conducting its line-by-line review. With only about a month left in the current year, Abon expressed his concern that "time may be running out."

The implication, Abon explained, would be to industry and business planners who would have to use 2005 tariff rates for their 2006 projections.

The Tariff Commission has been pushing for an early publication of the tariff schedule covering the period 2006 to 2010 to allow industry and business better planning tools.

However, the TRM technical committee wants to leave up to the CTRM the crucial decision to publish the country’s tariff schedule for 2006-2010 because of potential implications to the still forthcoming World Trade Organization (WTO) negotiations in Hong Kong in December.

Senior Trade Undersecretary Thomas Aquino had explained that such a decision has to be made by the CTRM and not just the Tariff Commission because of possible implications to the Philippines’ own negotiating position in the WTO.

During the last round of talks in Cancun, Mexico, the government position was to keep the Philippines’ bound rates high in order to give the country some flexibility should the WTO talks – especially on non-agricultural market access (NAMA) – include a mandated round of cuts.

Aquino maintains the same position and the need to protect those figures before the WTO negotiation in December.

Abon is also uncertain if the technical committee will accept the recommendations of the Tariff Commission which had completed its earlier review of the country’ tariff program.

Its recommendation was for about 30 percent of the rates to be reduced, 50 percent would be maintained and about 20 percent would be raised.

He did not disclose the average rate of reduction.

While normally the tariff schedule is published on an annual basis, it was suggested that publishing the rates for 2006 to 2010 would be a big help for planning purposes of industries and business because it would establish predictability.

An annual or bi-annual publication, for negotiating purposes, however, would be more favorable in negotiations so that the Philippines’ position is not exposed.