The National Economic Development Authority (NEDA) board has approved the proposed extension of reduced Most Favored Nation (MFN) tariff rates for key commodities covered under Executive Order No. 10, such as rice, corn, and meat, until December 31, 2024.

"The Board endorsed the proposed executive order to extend the reduced Most Favored Nation or MFN tariff rates on selected commodities covered under Executive Order No. 10, Series of 2022 including pork, corn and rice until December 31, 2024," Secretary Arsenio Balisacan announced Thursday.

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Balisacan said tariff rates for pork “will remain at 15 percent in-quota and 25 percent out-quota; corn at 5 percent in-quota and 15 percent out-quota; and rice at 35 percent for both in-quota and out-quota for the extended period."

This, he said, will help “ensure an adequate supply of agricultural commodities and maintain stable and affordable prices, thereby better managing potential inflationary pressures."

The country’s economic managers earlier proposed the extension of the validity of reduced tariffs, which was due to lapse on December 31, 2023, to address elevated inflation.

“The review of the Commission on Tariff-related matters is that there are continuing challenges in the global markets. There are supply issues. In the case of the swine for example, I mentioned the spread of the African fever and with respect to corn and rice we still see shortages meaning demand exceeding production so that the shortage would have to be sourced form imports but world prices continue to be elevated. So to reduce the impact of high prices coming from imported products we have to extend the validity of the reduced tariffs,” Balisacan explained.

“So, just to ensure that those higher prices will not be transmitted into our local markets at least or temper the effects of those prices from the global market and our local markets. We need to keep those reduced tariffs. Otherwise, if you don’t keep them, meaning the tariffs will now move, in the case of rice from 35% to 50%. So, world prices are rising, pagkatapos dagdagan po ng another increase in price, ‘di mas lalong mag-spike iyong prices paid by our consumers. So, we don’t want that to happen. And of course, it will impact also inflation,” he continued.

In addition, Balisacan said the NEDA Board also approved the recommendation of the Committee on Tariff Related Matters to modify the review period for the tariff rate on coal from semestral to an annual basis, while the tariff rates on pork, corn and rice will be reviewed in a semestral basis.