DTI to block bid to hike canned meat prices on basis of tariff rate
THE Department of Trade and Industry (DTI) on Tuesday vowed to reject all petitions to increase the price of canned meat on the basis of tariff, and committed as well to keep an eye on factors that may influence the cost of the basic good.
Consumers have eluded what appeared to be a looming price hike on canned goods when the tariff rate on mechanically deboned meat (MDM) reverted to 40 percent. MDM is used to make processed meat products that can supply protein and are affordable to many, such as hotdogs and luncheon meat.
Trade Secretary Ramon M. Lopez also told the BusinessMirror his agency will reject any petition to raise the prices of canned goods.
He specified petitions made on the basis of tariff. President Duterte last week signed Executive Order (EO) 123 that retains the tariff on chicken and turkey MDM at 5 percent, without which the rate would stay at 40 percent.
“We can commit that DTI won’t approve any price on canned goods if it is due to change in tariff because that’s the one that was retained at 5 percent and therefore shouldn’t cause an increase in cost,” Lopez said in a text message.
However, Lopez admitted there are “other factors” to watch out for that may compel makers of canned meat to appeal with the DTI for a price increase. Sought what these “other factors” are, he did not specify them and just said his agency will keep an eye on them.
“The increase in tariff rate would have brought about increase in cost. We avoided that for sure,” Lopez said.
“But you know also that there are other factors which we watch closely so as not to lead to any price increase,” the trade chief added.
On Monday Malacañang announced the President issued EO 123 to reimpose the tariff rate of 5 percent on MDM as stated under the previous EO 82, which expired on December 31 of last year, and this automatically jacked up MDM duty to its original rate of 40 percent.
Since then, concerns have been raised over the possibility of a price hike on canned products and processed meat since MDM serves as a key component in manufacturing these commodities.