DA Execs Seeking Extension Of Tariff Protection For Rice Farmers [Philippines plans rice imports from Cambodia]

By MARVYN N. BENANING

May 13, 2012,

mb.com.ph

MANILA, Philippines - The Department of Agriculture (DA) is pushing negotiations with other countries for the extension of the Philippines’ quantitative restrictions (QR) on rice.

These restrictions, which allow the country to impose higher tariffs on rice to protect domestic rice producers and eventually help the country achieve rice self-sufficiency, will end in June. Under the current system, additional rice imports are slapped a tariff of 40 percent, making imported rice more expensive.

The Philippines is asking for a QR extension but it has to offer sweeteners to exporting countries like the reduction of duties on other agricultural commodities to compensate for the protection extended to rice.

China has indicated that it will not oppose such QR extension. Other countries like India, which is now awash with rice, have to be convinced of the necessity of the QR.

National Food Authority (NFA) Administrator Lito Banayo said that bilateral negotiations with other countries are ongoing.

“We have divided the work among Undersecretary Segfredo Serrano, assistant secretary Romeo Recide and others so we can report to the World Trade Organization (WTO) in Geneva before the end of June,” he said.

“We have to report by June 22 to show our good faith,” Banayo said.

Turning to the matter of rice imports from Cambodia, Banayo said he has asked Agriculture Secretary Proceso J. Alcala for an urgent NFA Council meeting as the lean months are approaching “and we still have to proceed with the government-to-government (G2G) negotiations.”

He said that a draft memorandum of understanding (MoU) with Cambodia had been crafted as early as February. Undersecretary Emerson Palad said the MoU was sent to Malacanang and Alcala had already written President Aquino to authorize him to sign the MoU with Cambodia on behalf of the Philippine government.

“Secretary Alcala has also requested the Department of Foreign Affairs (DFA) to coordinate with the Cambodian government and request that the Cambodian ambassador be authorized to sign the MoU on behalf of Phnom Penh,” Palad said.

“The revisions of the draft MoU had been transmitted to Cambodia,” he said.

As to the terms of reference, Palad said it will be short term and on a need basis, but unsure if it will cover two or three years.