Marcos signs law declaring smuggling, hoarding of agri products as economic sabotage

MANILA, Philippines – President Ferdinand Marcos Jr. on Thursday, September 26, signed into law the Anti-Agricultural Economic Sabotage Act categorizing smuggling, hoarding, profiteering, and cartel operations of agricultural products as forms of economic sabotage.

In his speech at the ceremonial signing of the law in Malacañang, Marcos noted that economic sabotage is “a non-bailable offense punishable by life imprisonment and fines up to five times the value of the goods involved.”

The law seeks to impose higher penalties on violators and prevent entry of smuggled agricultural goods in the country.

Due to agricultural smuggling, the Philippines lost P3 billion in 2023, according to the President.

“Economic sabotage in agriculture is not simply a tale of dubious deals and inflated profits; it manifests as well as hunger, desperation, as betrayal,” Marcos said.

“And let me be clear: this law does not just target the masterminds; it holds all accomplices accountable– financiers, brokers, employees, even transporters,” he added.

Marcos served as concurrent agriculture chief in his first year in office. His stint in the Department of Agriculture was hounded by issues on alleged onion and sugar smuggling and cartels’ manipulation of prices which had been subject of Congress inquiries last year.

Earlier in September, the Philippine Competition Commission (PCC) charged 12 onion traders for alleged market allocation or working as a cartel since 2019 — controlling the market price of 50% of imported onions at one point. The case has the “largest recommended fine” at P2.423 billion.

The law creates the Anti-Agricultural Economic Sabotage Council chaired by the President and will include the secretaries of agriculture, finance, transportation, trade, interior and local government, justice, and law enforcement agencies.

The new law repeals Republic Act No. 10845 or the Anti-Agricultural Smuggling Act of 2016.

“This is a tougher law, mapapaisip ang mga gumagawa ng kalokohan bago nila gawin,” Agriculture Secretary Francisco Tiu Laurel Jr. told reporters on Thursday. (This is a tougher law, violators will think twice before they commit crimes.)

The agriculture chief said government agencies will have “visitation rights” on grain warehouses and cold storage facilities.

“Any warehouse now na may food at hindi registered malamang iligal ‘yan,” Tiu Laurel said. (Any warehouse with food and is not registered is likely illegal.)

The government is currently focusing on bringing down the price of rice, with the Marcos administration recently cutting tariffs for imported rice. Tiu Laurel previously said they are expecting to feel the effects of the reduced tariff on rice prices by mid-October. – Rappler.com