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Issue Number 22, January 2003

Kapatiran Issue No. 22, January 2003

NZ, Globalisation And Philippines Farmers
- Tim Howard



Under "globalisation", otherwise known as corporate imperialism, 14 importers led by Rustan's Supermarket brought 266 tons of vegetables into the Philippines in the first nine months of 2002, causing huge losses to farmers in the Cordillera and other areas, who produce the same crops.

As the article below shows, NZ vegetable imports are one of the factors hurting local producers. Steep drops in the prices of locally produced palay (unhusked rice) are also being blamed on the Macapagal-Arroyo's administration's policies (like NZ's) of trade liberalisation and importation. The late Rod Flores, Chair of the Alyansa ng Magbubukid ng Gitnang Luzon (AMGL - the Alliance of Peasants in Central Luzon), was quoted by the Philippine Daily Inquirer on October 1, 2002, as saying "President Macapagal-Arroyo is the biggest 'rice smuggler' in the country. She has legalised rice smuggling in the name of rice importation and liberalisation. The flooding of imported rice in our local market is the main reason prices of palay have dropped".

New Zealand's neoliberal Labour-led Government and its Agriculture Minister, Jim Sutton, are strong advocates internationally for the total removal of protections against imports of agricultural products. The NZ government, and all those in solidarity with Philippine peasants, need to take into account the impact that exporting NZ products already has on farmers and families in countries like the Philippines.


Benguet Farmers To Protest Vegetable Importation
By Vincent Cabreza and Desiree Caluza,
Philippine Daily Inquirer, 6/10/02

Baguio City -- Former Senator Wigberto Taņada, an anti-globalisation advocate, will join this month about 12,000 Benguet farmers in a series of rallies that will protest the displacement of Benguet vegetables by legally imported Australian produce, Benguet Governor Raul Molintas said.

Molintas said Benguet Board Member Johnny Uy, a former Atok mayor and himself a vegetable farmer, had talked to Taņada in Manila this week to relay the farmers' concern that the Department of Agriculture had concealed the real impact of imported vegetables on their industry.

Molintas said the Government had yet to respond to a formal appeal made by seven Cordillera congressmen, six governors and a city mayor on September 22 for a review of a government policy, which allowed Australian imports, despite Australia's trade barrier conflicts with Filipino farmers.

"We are asking President Macapagal-Arroyo why vegetable importation should be allowed in the first place, given the abundance of vegetables coming from the Cordillera," said Molintas.

He added: "(Agriculture Secretary Leonardo) Montemayor was here in August but he only disclosed to us the identities of three importers, among them Rustan's Supermarket and Tuckerbag Inc.".

Molintas said the firms' import clearances in July only covered 3,348 kilograms of Australian carrots and 5,758 kg of assorted vegetables like lettuce and broccoli.

Montemayor earlier met with Benguet farmers after his inspection in La Trinidad, Benguet, confirmed the influx of smuggled Chinese vegetables that were apparently re-routed from a Japan shipment.

"Apparently, farmers here were given the wrong information, and therefore had braced themselves with wrong safety nets against the imported Australian vegetables. We thought we were fighting mere hotel suppliers. We did not know we are competing with supermarkets and groceries already," Molintas said.

Patricio Ananayo, chief of the Department of Agriculture's agribusiness and marketing division here, said the locally produced vegetables already meet the demands of hotels and restaurants.

He said Benguet farmers have been importing American, Japanese and European hybrid seeds since the 1960s, which produce top-quality cauliflower, broccoli, carrots, potatoes and cabbages.

Lulu Gimenez, information officer of Apit-Tako (Alliance of Peasants in the Cordillera Homeland), said Australian imports are better packaged, which explains their attractiveness to supermarket chains. But local vegetables actually taste better and contain better nutrients, she said.

Benguet farmers lost 21 billion pesos in unfulfilled transactions after imports from Australia, New Zealand and The Netherlands between July and August 2002 displaced the province's vegetables.

"This situation prompts us to request for suspension of the implementation of the General Agreement on Tariffs and Trade provision for the lifting of quantitative restrictions on vegetables in the entire country, owing to its injurious effects (on Filipino farmers)," Cordillera officials said in their appeal to Ms Macapagal.

Tim Howard is a PSNA member living in Whangarei

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