Fisheries sector hits RP tariff policy stance in WTO talks

The fisheries sector had criticized the government for adopting a tariff policy in the Non-Agriculture Market Access (NAMA) negotiations of the World Trade Organization (WTO), arguing that will put the fishery industry at a very disadvantageous trading position.

Arsenio Tanchuling, executive director of Tambuyog Development Center, a non-government organization, said government’s adoption of a 25 percent coefficient under the Swiss formula being promoted by influential WTO members would be highly disastrous to the country’s local economy since it would result in an unequal tariff reduction rate for developing and developed countries.

Tanchuling warned that "once in place, the said formula would reduce Philippine tariff rates under NAMA by up to 48 percent while those of developing countries would only have a 10 percent reduction."

He noted that the average fishery tariff rate of 15 percent in Nov. 14, 2001 would be used as the starting point for tariff reductions under the formula.

He explained that "a 48 percent reduction would mean a bound tariff rate of only 7.2 percent, which would then undergo further reductions until zero percent is reached."

Fishery products are lumped together with industrial and manufacturing products under the NAMA category of negotiations in the WTO.

Tanchuling said the said policy does not only put the Philippines’ already inferior fishery sector to a more disadvantageous position, but also invites more economic burdens for the people.

"Aside from endangering our fisheries sector, its immediate impact is the deprivation of a significant amount of tariff revenues from such products. Tariff revenues contribute up to 17 percent of the gross domestic product," Tanchuling said.

He added that the loss in tariff revenues could further hurt the people as the government would only pass on the burden to them through additional tax increases.

Tanchuling warned that the policy would further "de-link" producers from the processing sub-sector in local fisheries industry.

"The existing tuna, sardines and mackerel canneries would only become more dependent on cheaper imports instead of locally produced fish. As such, the 1.7 million small fishermen would be cut off from the development of the fishing industry since only the exporters would benefit from the fish imports," he explained.

Tanchuling proposed a higher 10 percent exclusion from tariff reductions for sensitive NAMA products, equivalent to 506 products, instead of the five percent exclusion adopted by the Philippine government which consists of only 253 products.

"The current negotiation is supposed to be a development round after the collapse in Seattle and Cancun. But based on what has been happening, it proves to be quite the contrary," he said.