NPPC lobbying targets tax reform and Philippine pork imports
Tax Aggie Coalition calls for tax protection for family farms
NPPC, through its membership in the Tax Aggie Coalition, sent a letter to congressional leaders reiterating that any tax reform must have built-in protections for family farms.
“As Congress focuses on investing in our country’s infrastructure and human resources, we urge you not to change or eliminate long-standing tax code provisions that are fundamental to the financial health of agriculture. production and companies that provide its inputs, transport. its products and market its products, ”the letter explained.
The letter focused on the current proposal to eliminate the phase-in base and impose capital gains taxes on death. These proposals have gained popularity in recent weeks, with the Biden administration proposing such measures to pay for upcoming infrastructure investments, with few details on how farms will be exempted. The letter also emphasized coalition support for maintaining deductions under Section 199A and the “like-for-like” trade provisions as essential to maintaining profitable farms. Click here to learn more about Biden’s tax and infrastructure proposal. Click here to read the coalition’s letter.
Philippines slashes minimum access volume for pork imports
To combat rising pork prices and stabilize supplies, the Philippine government announced last month that it would provide better market access for pork imports. Philippine President Rodrigo Duterte signed an executive order reducing the Minimum Access Volume (VAC) for pork imports from 404,210 metric tonnes (MT) to 254,210 tonnes. The decision was prompted by the concerns of local pork producers, upset by the increase in quotas. A decree could also be signed increasing tariffs – which were reduced last month – by 5%.
Under previously announced tariffs for pork imported under the VAC, these are reduced for 12 months, from 30% to 5% for the first three months, and then by 10% thereafter. Tariffs for pork imported above the MAV are reduced for twelve months from 40% to 15% for the next three months, and then increased to 20% thereafter.
Ensuring better access to the Philippine market has been a long-term business priority for NPPC. The Philippines has been battling African swine fever (ASF) since 2019, and the NPPC has been lobbying the governments of the United States and the Philippines to lower pork import tariffs since the start of ASF outbreaks in the country .
Thailand delays decision to join CPTPP
Thailand’s International Economic Policy Committee said it would take an additional 50 days – until June 25 – to decide whether the country should join the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). Even if a decision is made, the government still has several steps in the process, making it unlikely the country will submit its formal request this year. The government previously set a deadline in May to decide on membership.
The CPTPP includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, some of the largest pork consuming countries in the world. The NPPC continues to advocate for Thailand to end its de facto ban on US pork. In 2018, the NPPC called on the US Trade Representative (USTR) to review Thailand’s eligibility for the US Generalized System of Preferences (GSP), which provides developing countries with favorable access to the US market.
In November 2020, the USTR announced it was suspending $ 817 million in trade preferences for the country because it had not made sufficient progress to provide the United States with “fair and reasonable market access.” for pork products.