FEF petitions to cut tariffs for corn imports exceeding MAV
THE Foundation for Economic Freedom (FEF) said it petitioned the Tariff Commission to reduce the tariff on corn imports exceeding the minimum access volume (MAV) to 5%, citing the need to bring down meat prices.
In a statement on Wednesday, the FEF, an association of former government economic officials and technocrats, said it submitted its formal proposal to reduce the cost of corn, a key ingredient in animal feed, as a means of lowering the price of meat products and enhance competition in the value chain.
“This approach is particularly critical in the context of feed demand, where domestic corn production remains insufficient to meet the requirements of feed manufacturers,” the FEF said.
The government currently imposes a 5% rate for corn imports within the MAV quota of 216,939 metric tons, while shipments exceeding the quota are charged 15%.
The proposal seeks to equalize tariffs for all corn shipments, whether they fall within the MAV quota or not.
“By improving access to imported corn through a uniform tariff structure, the market becomes more responsive to fluctuations in demand, ensuring a steadier and more reliable supply of feed inputs,” the FEF said.
Imposing uniform tariffs for corn imports would help ensure a steady supply and reduced cost of feed inputs, thereby managing inflationary pressures for households, it added.
The group noted that reducing the cost of corn — which accounts for up to 65% of animal feed formulations — would eventually lower the price of pork and chicken products.
FEF also noted that the Department of Agriculture’s proposal to increase the MAV for corn and pork imports could result in rent-seeking, favoritism, and regulatory capture.
“By design, a quota system concentrates the power to determine who may import and in what volume — an approach that is inherently vulnerable to unequal access and even favoritism in decision-making,” it said.
The group added that MAV levels determined by the government may not accurately reflect real market conditions, thereby resulting in price distortions and inefficiencies in the value chain. — Beatriz Marie D. Cruz
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