Local firms split over AFTA implementation

MANILA, Philippines - Local industries are divided over the forthcoming full implementation of the ASEAN Free Trade Agreement (AFTA) next year wherein tariff rates on all products in the ASEAN region must come down to between zero and five percent.

The hog industry wants a five-year delay in the implementation of AFTA, warning that it would spell death to the Philippine hog sector which is still being hampered by the Ebola Reston-strain virus.

On the other hand, the Philippine Association of Meat Processors Inc. (PAMPI) is supportive of the full implementation of the free trade arrangement next year as it would open up the market for meat processors and help them in sourcing their raw material requirements.

At the sidelines of yesterday’s 17th Hog Convention at the World Trade Center, National Federation of Hog Farmers, Inc. (NFHFI) president Albert Lim Jr., pleaded anew for the delay in the implementation of AFTA at this time when the Philippines continues to deal with the cloud of suspicion about its pork products following the detection of the weaker Ebola Reston-strain virus in local pigs, particularly in the province of Bulacan and Pangasinan.

The Philippine hog industry, Lim said, needs more time before it should open up to competition from its ASEAN neighbors.

The hog sector’s position is supported by the Philippine Maize Federation (Philmaize) which has expressed fears that without tariff protection, the corn sector could collapse with the full unrestricted entry of imported corn.

PAMPI executive director Francisco J. Buencamino welcomes the full implementation of AFTA next year as it would open up the market for local meat processors to export their products and would also facilitate the importation of vital raw materials for the meat processing industry.

The hog and corn sectors’ position is supported by Agriculture Secretary Arthur Yap who has stated his desire to negotiate for a five year delay in the implementation of AFTA.

However, while the Department of Agriculture has expressed its desire to push for a delay, the Department of Trade and Industry (DTI) is the lead agency that must negotiate with its ASEAN neighbors for such a delay.

Trade and Industry Secretary Peter Favila has reportedly conveyed to his counterparts the Philippines’ concerns about AFTA, but there has been no formal move on any of the ASEAN members to convene and discuss a possible delay in the AFTA implementation.