PHL no longer pursuing rice importation quotas – DTI

The Philippine import quota on rice is expiring this week, but Trade Secretary Ramon Lopez said on Wednesday the decision is to no longer apply for another extension of the quantitative restrictions (QR) on shipments of agricultural produce.

"Hindi na i-extend 'yung QR on rice. Na-decide na 'yun. It has already been discussed by the NEDA Board in its earlier meeting," Lopez told GMA News Online on the sidelines of the 5th Annual Ease of Doing Business Summit in Manila.

NEDA is the National Economic and Development Authority.

The decision means that Philippine imports of rice will no longer be guided by tariff restrictions. In other words, after June 30, 2017, it's free trade in rice.

"Ang mangyayari naman dun, may kapalit na tariff 'yan. So ita-tariffy 'yung dating QR," the Trade chief, who chairs the Committee on Tariff and Related Matters with Socio Economic Planning Secretary Ernesto Pernia, noted.

To give local farmers more time to prepare for free trade, the World Trade Organization (WTO) granted the Philippines an extension of its QR on rice importation until June 30, 2017. QR is a non-tariff measure to limit the volume of imports of a specific product.

In 1995, the WTO first allowed the Philippines to impose a 10-year QR on rice importation. In 2004, it was extended to 2012, and renewed in 2014.

Under the 2014 extension, the Philippines increased the minimum access volume (MAV) to 805,200 metric tons and reduced the tariff to 35 percent on import volumes  within the MAV. A tariff of 50 percent was imposed on importations outside the MAV.

"Ang latest doon is the Tariff Commission, with the DTI and Department of Agriculture, will conduct hearings on the appropriate tariff to be added to the current tariff, which is 35 percent ... So, what could be the equivalent of the QR will replace or will be added to the tariff," Lopez said.

The Trade chief also took note that the economic managers unanimously decided to lift the QR on rice.

"The economic managers are one in really supporting the lifting because there will be ample protection to farmers naman e by imposing tariffs. At may revenue pa na mapupunta sa government," Lopez said.

The Trade chief allayed fears that lifting the quota on rice importation will result in a flood of imported rice that will eventually reduce prices to the detriment of local farmers.

"Contrary to the belief na ifa-flood 'yung market, hindi 'yan mangyayari kasi hindi naman 'yan tariff-free to the point na magbabagsak sila ng presyo tapos malulugi 'yung farmers natin," Lopez emphasized.

"With more tariffs to be imposed on rice imports, the importers, I believe, will be more careful with their inventory," he added. — VDS, GMA News