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stronger mesh that can protect our famers and fisherfolk and the economy as a whole. I hold this as our collective en-deavor. In closing Mr. Speaker, this humble Representation just filed today House Bill 6158 declaring May 15 each year as Farmers and Fisherfolk Day with the hope that such will be a fitting reminder for everyone to focus on agriculture, on their pro-tection and development in evolving a policy environment. I hope that when we get to commemorate Farmers Day as an official holiday sometime next year, we will now be celebrat-ing that day on a brighter and hopeful note for the farmers and fisherfolk.

Mabuhay muli sana ang mga magsasaka at mangingisda. Maraming Salamat!

REPAIRING BROKEN MESH

In AGRICULTURAL

SAFETY NETS

Privilege Speech delivered

by Rep. Agapito H. Guanlao

in Plenary on May 14, 2012

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REPAIRING BROKEN MESH IN AGRICULTURAL SAFETY NETS

(Privilege speech delivered by Rep. Agapito H. Guanlao in ple-

nary on May 14, 2012, on the occasion of the Farmers Month) Mr. Speaker, my dear colleagues in this August Chamber, to-day I rise on a matter of personal and collective privilege on issues that are nearest to my heart. A few days ago we celebrated the International Day for La-bor! And with that, I would like to offer my sincerest thanks to the Filipino workers for their contributions to national development and their continuing struggle to promote the rights of workers. “Mabuhay ang Uring Manggagawa.” The creation of more jobs is a constant hope by both the workers and the administration. For the workers, job oppor-tunities are aspired for alongside with just, fair and competi-tive wages. For the current administration, job creation and investment generation are its economic pillars. Mr. Speaker, the reason why I am delivering this speech today is actually to herald the celebration of Farmers Month this May. The issues on workers development does not depart from issues on farmers and fisherfolk development and for that matter, the whole agricultural sector. The real issues that I am trying to raise this time in behalf of the farmers is the nexus between rural unemployment, dwindling invest-ments, uncontrolled importation and the unabated smug-gling. The pressures on the administration to create more jobs in the urban centers are caused, and are related to the dwin-dling sources of employment in the rural areas – in the

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ployed by the National Meat Inspection Service with regards to control procedures in Economic Zones. It is also about time that strict Phyto-Sanitary exami-nation be conducted on all agricultural products be regularly undertaken even before they enter ports. This will assure the population that the food they eat are safe.

I also urge the Department of Agriculture, the Bureau of Customs and the Department of Trade and Industry to purge the list of agricultural importers of smugglers. By that I mean a review of accreditation processes, documentation and other procedures for that matter.

May I emphasize Mr. Speaker that government must

cleanse its ranks of unscrupulous officials from the Bureau of Customs, The DA and the DTI and other agencies that make it easy for smugglers to conduct their trade illegally. Charges must immediately filed against them and immediately boot them out of their positions.

Bilang konklusyon, Lumalabas Mr. Speaker na ang mga lam-bat pangkaligtasang ating hinabi ay puno ng guwang at dapat nang sulsihan. Kasabay nito, kinakailangang palakasin natin ang posisyon ng ating maliliit na magsasaka upang sila ay ma-kalikha ng sapat para sa pangangailangan ng agrikultura at ng bawat Pilipino. Ang maunlad na kabuhayan ng bawat mag-sasaka at mangingisda ay magtitiyak sa sapat na produksyon ng pagkain ng bawat Pilipino. Mr. Speaker, Farmers Security is Food Security. Mr. Speaker, My humble proposals are but part of the process of repairing part of the mesh of the safety nets that we tried to weave before. But I am confident that we could build a

14

ernment implemented this provision amidst over-importation.

The Agricultural Competitiveness Enhancement Fund (ACEF) must be strengthened as a resource for food or rice sufficiency, a matter that requires a review or amendment of some of its provisions, including the augmentation and re-direction of its funds. Perhaps we should then ask, how much had been the collec-tion of ACEF through the years, and how were these funds used. This is indeed necessary if we are to spend prudently the P2 Billion funds left.

Oblige the Department of Agriculture especially its con-

cerned agencies, the Bureau of Customs and involve police and other agencies of government to collec-tively ban imported meat and poultry products pene-trate and saturate our local wet markets.

Government must review inspection protocol and the

way these are implemented in ports. In particular, I humbly recommend that the Department of Agricul-ture and its relevant agencies must be afforded “first inspection before the conduct of customs activity” on all vessels carrying imported agricultural products. I understand that as of lately, an agreement to this ef-fect was made between the BOC and the DA as a result of the on-going House inquiry by the Special Commit-tee on Food Security. This only needs to be executed.

A review and amendments on monitoring procedures for PEZA imports such that utilization schedules of agricultural imports must be specified before imports are made will prevent seepage of excess imports in lo-cal wet markets. This will warrant the review of pro-cedures or even the documentation processes em-

3

farms, in the plantations, livestock farms, feed mills, and oth-er farming-supported economic activities. This should be a reason for alarm for government because at Present, Agriculture may not be Performing well to sup-port our Economy. This analysis can be deduced from some data coming from the national statistics and coordination board.

domestic economy has decelerated for the third consecu-tive quarter from 7.3 percent in 2010 to 3-2 percent in 2011

FOR THE SAME PERIOD, the Contribution of Agriculture and Forestry to the Gross Domestic Product only reg-istered at 1.8 percent (at 2000 constant prices) from quarter 3 OF 2010 to quarter 3 of 2011.

The State of Rural Employment at a Glance Today, agriculture still employs about 33 percent of the country’s total 12 million labor force. However, employ-ment in agriculture from 2011 to 2012 reported an incre-ment of negative 79 according to the Bureau of Labor and Employment Statistics. Paano na po ang mga kababayan na-tin sa kanayunan kung ganito ang kalagayan?

Mr. Speaker, this may explain why farmers are still reel-ing from extreme poverty. This is why poverty is rural? Data from the Board of Investments show that foreign investments in Agriculture, Forestry and Mining has been getting the negative mark. From P2 billion in 2010, investments both local and foreign plunged to P805 mil-lion in 2011. Ibig po bang sabihin, kulang pa rin ang mga trabaho at walang sapat na namumuhunan (investors) sa pagsasaka at pagbubukid?

4

Kung bumababa po ang bilang ng mga interesadong mamuhunan sa agrikultura, may epekto po ito sa

pagbawas din ng mga trabahong may kinalaman sa agrikultura, hindi po ba, Mr. Speaker? TABLE 1. Approved Investments 2010 and 2011 (Source: Board of Investments) The Promise of GATT and Importation The Philippines joined the rest of the world and became a sig-natory to the General Agreement on Tariffs and Trade of the World Trade Organization due to its promise of a leveled playing field. Amidst criticisms on its negative impacts to

agriculture and livelihood of rural workers, the gov-ernment nonetheless assured critics that there will be safety nets to cushion the effects of global trade. “Subali’t, ito rin yata ang nagbibigay ng suliranin sa ating mga magsasaka. Mr. Speaker, wala pong masa-ma sa importasyon ng mga produkto ayon sa mga ali-tuntunin ng GATT-WTO. Subali’t kung ito ay magiging sanhi upang matalo ang mga lokal na produkto natin, at lalong-lalo na ang magasara ang mga industriya,

APPROVED INVESTMENTS/PERIOD INDICATOR

TOTAL APPROVED INVESTMENTS BY FILIPINO AND FOREIGN INVESTORS FOR AGRICULTURE, MINING AND FORESTRY - First Semester 2010 to

First Semester 2011 (Board of Investments)

GROWTH RATE (60.5)

VALUE OF LOCAL AND

FOREIGN INVESTMENTS

2010: P2,000,000,000

2011: P805,000,000

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sentation strongly feels that any amendment to this law must be within this framework. Mr. Speaker, ang RA 7845 ay naisabatas noong 1994 – ang tanong, may-roon na po bang nakasuhan o nahatulan ng batas na ito? Kung wala, nagmimistulang inutil ang batas na ito at dapat nang ameyendahan.

Implement with strong political will the provisions of Republic Act No. 8178 entitled AN ACT REPLACING QUANTITATIVE IMPORT RESTRICTIONS ON AGRICUL-TURAL PRODUCTS, EXCEPT RICE, WITH TARIFFS, CREAT-ING THE AGRICULTURAL COMPETITIVENESS ENHANCE-MENT FUND, AND FOR OTHER PURPOSES.

In particular, government should commit to fulfill what this law provides which is : To help the agricul-tural sector compete globally, the State shall seek to raise farm productivity levels by providing the nec-essary support services such as, but not limited to, irrigation, farm-to-market roads, post-harvest equipment and facilities, credit, research and devel-opment, extension services, other market infra-structure and market information.

Another area in the law that needs a comprehensive review is Section 6 of the law on Tariffication. In par-ticular is that portion of Section 6 that reads: “In case of shortages or abnormal price increases in agri-cultural products, whose quantitative restrictions are lifted under this Act, the President may propose to Congress, revisions, modifications or adjustments of the Minimum Access Volume (MAV): Provided, howev-er, That in the event Congress fails to act after fifteen (15) days from receipt of the proposal, the same shall be deemed approved.” The main question is, how gov-

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Still, weaknesses in inspection protocol at port of entry somehow make it easy for smuggling, including laxity in monitoring of goods at PEZA. In fact, about 1 million kilos of poultry that entered the Special Economic Zones in 2011 tax free was revealed by a customs personnel and the Committee suggests that part of the unutilized imports may have seeped through the local wet markets. Mr. Speaker, marahil ay sapat na po ang patuloy na paghuhumiyaw ng mga lokal na mamumuhunan at ang mga nagsarang mga backyard pig at poultry farms para patuna-yan ito. Sapat na po marahil ang bantang “pig at chicken holidays” na tugon ng mga ito sa laganap na smuggling na sanhi ng kanilang pagkalugi upang marinig natin ang kanil-ang mga hinaing.

Mr. Speaker, smuggling has to stop! WHAT SHOULD BE DONE? Mr. Speaker, we now see an intricate connection between our country’s weak position in trade relations with the global community and the weakness of our safeguards and import protocols that smugglers take advantage of. For this reasons this humble Representation lays the following policy recom-mendations and urge this August chamber to take action:

Review and amend Republic Act 7845 entitled AN ACT RA-

TIONALIZING AND STRENGTHENING THE PROVISIONS ON ANTI-DUMPING, AMENDING FOR THE PURPOSE SEC-TION 301, PART 2, TITLE II, BOOK I OF THE TARIFF AND CUSTOMS CODE OF THE PHILIPPINES, AS AMENDED.

The said law just needs to be implemented by the gov-ernment armed with a strong political will. If the problem are the standards that build up prima facie evidence against so called “dumpers”, then this Repre-

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at mawalan ng hanapbuhay ang mga magsasaka, e tunay na pong nakakabahala.” If we look into the regular imports that are now penetrating our local markets, we will see that a sizable volume of im-ports that flood our stores are food products. These are products that our farmers and businessmen raise and oper-ate. Most of which are rice, meat products, fruits and vege-tables.

Table 2. Philippine Imports (Source: National statistics office)

Top Ten Philippine Imports from All Countries

(February and January 2012 and February 2011 )

Electronic Products

a) Components/Devices (Semiconductors)

b) Electronic Data Processing

c) Office Equipment

d) Consumer Electronics

e) Telecommunication

f) Communication/Radar

g) Control and Instrumentation

h) Medical/Industrial Instrumentation

i. Automotive Electronics

2. Mineral Fuels, Lubricants and Related Materials

3. Transport Equipment

4. Industrial Machinery and Equipment

5. Plastics in Primary and Non-Primary Forms

6. Organic and Inorganic Chemicals

7. Cereals and Cereal Preparations

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8. Iron and Steel

9. Telecommunication Equipment and Electrical Machin-ery

10. Medicinal and Pharmaceutical Product

Table 3. Philippine Imports (Source: National Statistics Office)

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Then the vicious cycle continues. People from the countryside migrate to the urban areas and cities and compete with lim-ited and available jobs there.

Unabated Smuggling Still, the unabated smuggling of agricultural products ag-gravate the situation. Just this May 10, 2012, the Bureau of Customs seized more than 270,000 kilos, with an estimated P35,000,000 worth of onions from Hongkong in 11 contain-er vans declared as household items. On the other hand, smuggling in pork and meat to date con-tinues and even found its way to wet markets across the country, threatening to extinction the local hog and poul-try production industries. Findings of the House Special Committee on Food Security point to smuggling as the culprit of over-importation of pork and chicken. Because of this pork producers are esti-mated to have suffered some P8 billion in losses from July to February this year. According to the Pork Producers Federa-tion of the Philippines, there are dummy corporations in the list of hog meat importers that even have a paid-up capital of only P30,000 that were allowed to import millions of pesos of pork and chicken. On the other hand, government revenue losses in taxes ac-cording to local swine and poultry producers reached to about P3.7 billion annually due to technical smuggling. Another finding is that some importers have been declaring prime cuts of meat as fat, offal and skin to avoid paying high-er tariff rates, since the latter only has a tariff of five per-cent. Prime cuts, on the other hand, have a 35-percent tariff.

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proved disastrous. Local markets are now saturated with imported chicken and pork cuts out-competing do-

mestic production and supply for chicken and pork. Table 5. Philippine Meat Imports (in Metric Tons) This issue is timely Mr. Speaker. “Nahaharap tayo sa na-pipintong pagsabog ng mga serye ng tinatawag na pork and chicken holiday. Malalim na ang naging epekto nito sa ating ekonomiya at kabuhayan ng mga tao”

Table 6. Importation Impact to Farmers’ Livelihood Table 7. ESTIMATED INDIVIDUALS INDIRECTLY AFFECTED BY IMPORTATION OF MEAT/PORK

“Hindi lang po mga magsasaka ang nawawalan ng trabaho dahil dito, Mr. Speaker. Pati mga Pilipinong mamumuhunan (investors) ay napipilitang magsasara at yung iba, ay lu-milipat na rin sa ibang bansa upang duon magtayo ng mga poultry at piggery dahil nga hindi nila nakukuha ang proteksyon mula sa ating gobyerno laban sa mga imported goods. Kung hindi ako nagkakamali, ang San Miguel Cor-poration po ay nagtayo na rin ng mga poultry at piggery sa Vietnam at iba pang bahagi ng Asya. Ibig sabihin lang Mr. Speaker, sa pagsara at paglipat ng mga Pilipinong ma-mumuhunan sa ibang bansa, marami ang nawalan ng tra-baho sa kabukiran.”

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8

Philippine Imports by Major Type of Goods February

and January 2012 and February 2011 (FOB in Thousand

U.S. Dollars)

Table 3.1 Philippine Imports (Source: National Statistics Office)

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Table 4. Philippine Imports (Source: National Statistics Office) Take the case of imports for pork and poultry products. Minimum Access Volumes (MAVs) for imported products such as frozen chicken are given a low ceiling thus en-joying lower tariff rates. Again, the effects of such have

2005 2006 2007 2008 2009 2010

50,000 55,000 79,000 110,000 115,000 150,000