‘Free-for-all’ rice importation needs Congress OK — exec

The government’s plan to adopt a "free-for-all" policy in rice importation that will allow the private sector such as farmers and traders to bring in rice at unlimited volumes needs Congressional approval, a top official of the National Food Authority (NFA) said.

NFA Deputy Administrator Gregorio Tan said any plan to lift quantitative restrictions (QRs) on rice imports, will require an amendment to the Agricultural Tarrification Act or Republic Act 8178 in 1996 which was one of safety nets established to protect local farmers from the anticipated onslaught of cheap agricultural imports.

"The plan to allow farmers and the private sector to import rice at unrestricted volumes have to go through a process and this means legislation by Congress since the issue of QRs on specific agricultural commodities are spelled out under RA 8178," noted Tan.

Tan was asked to comment on an earlier statement made by Agriculture Secretary Luis Lorenzo Jr. who said government is inclined to eliminate existing controls on rice importation imposed on the private sector as well as expand participants to include moneyed-traders who were not permitted this year to join the Farmers As Importers (FAI) program of the National Food Authority (NFA).

Under the FAI implemented for the first time this year, rice farmers were allowed to import half of this year’s import requirements. Farmers’ import permits come in the form of the issuance of letters of credit by the Land Bank of the Philippines. This enables government to monitor the volume of rice shipped into the country.

"The President wants as much as possible to lift the limits imposed on rice imports such as volume restrictions," said Lorenzo.

Under President Arroyo’s directive, farmers, as well as traders, may no longer be required to secure import permits before transporting rice into the country. At the same time curtailments on the volume that could be brought in might also be lifted.

The government currently implements a QR on rice to shield local farmers from price-weakening imports. QR refers to non-tariff restrictions used to limit the amount of imported commodities including but not limited to discretionary import licensing and import quotas, whether qualified or absolute.

Under the government’s commitment to the WTO, the QR on rice expires on June 30, 2005 and if government wants to seek an extension, it should announce its position by June next year, and negotiate with its trading partners.

Major rice importing countries such as Thailand, India, Indonesia, Vietnam, and other WTO members like the US, Myanmar, Latin America are expected to contest the Philippines’ position to seek an extension of its QRs on rice.

Tan said the government will make is decision on whether to maintain the QRs on rice or just imposed tariffs when it has concluded negotiations with its trading partners.

"We have to discuss with them and determine which will be a better fit for us. There is a cost to lifting QRs and we have to find out what it will cost to maintain it. Right now we are trying to look for a common ground, we have to go through the process first," noted Tan.