Aside from rice and sugar, the private sector is requesting the government to request for a five-year exemption of livestock from the zero-duty trading regime in ASEAN starting January next year.

Malacanang special trade representative Donald Dee told reporters that U-ACT, the trade advocacy arm of the Philippine Chamber of Commerce and Industry is preparing its final position for submission to the Department of Trade and Industry.

Dee would like the government to push its request during the ASEAN Leaders Summit on the 23rd this month in Hua Lin, Thailand.

“Our cost of production is higher than that of other countries in the region. At zero tariff the local industry will not be able to compete

Dee said the high tariff on livestock has kept imports at bay particularly chicken.

“We have to protect our livestock industry from the onslaught of liberalized trade. The industry needs enough time and government intervention to make their operations competitive,” Dee said.

Dee further explained that the culprit really to the high cost of livestock production in the country is the high cost of corn, the raw materials for animal feeds, but the government has restricted the importation of corn to protect domestic corn farmers.

“Reducing tariffs on corn is not also acceptable to our corn farmers, so we just have to delay trade liberalization on livestock,” Dee said.

Dee noted that many ASEAN countries are ready to export livestock to the country once the tariff goes to zero in January next year.

The Philippines has already started consultations with other ASEAN countries, especially Thailand for the continued exemption of rice and sugar from the Common Effective Preferential Tariff (CEPT), the main vehicle in the implementation of the ASEAN Free Trade Area.