Trade and Fiscal Incentives - National Agricultural and Fishery ...

Targets
4.2.5 Relative to trade and fiscal incentives, the major target of AFMA is to
provide the enabling policy environment such that Philippine agriculture and
fishery products can have the competitive edge in terms of product quality, price,
and volume of output produced with the greatest relative efficiency in the use of
resources, as needed by the domestic and global markets.
Empirical Findings
General Trends in Agricultural Trade
4.2.6 Agricultural trade has two basic components in this analysis: export and
imports of agricultural outputs, and export and imports of agricultural inputs or
those used in the production of agricultural outputs. These two general trends in
agricultural output/input trade are analyzed before (1993-1998) the enactment of
AFMA and after (post) enactment (1999-2005) or during AFMA implementation.
4.2.7 The trend in total agriculture output exports before (1993-1998) and during
(1999-2005) AFMA implementation is shown in Figure 4.2.1. The average values
of agricultural output exports before and after AFMA were almost in the same US
(FOB) $2,000 million levels. Before AFMA, total value of agriculture export
averaged US (FOB) $2,052.3 million. In contrast, agricultural export value after
AFMA implementation averaged US (FOB) $ 2059 million. Several events
affected the agricultural export performance during the AFMA implementation
years. One was the lagged effect of the financial crisis in 1997-1998 which
brought uncertainty in the financial sector. The other more serious problem
during the period was the El Niño phenomenon in crop years 1998-1999,
affecting the volume of exports. During the period 2005 however, total
agricultural output export value peaked at US $ 2,552 million overtaking the
average export value during the pre-AFMA period (Figure 4.2.1).
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