RP retains quantitative restrictions on rice imports for 7 more years

The Philippines will be able to officially maintain its quantitative restrictions (QR) on rice for seven more years as India finally agreed to withdraw its opposition to the country’s bid to protect its domestic rice industry from rice import surges.

"India has lifted its reservations on our position to retain the QRs on rice," said Agriculture Undersecretary Segfredo Serrano.

Serrano, the country’s chief negotiator on rice, said the next step would be for the Philippine government to re-notify the World Trade Organization (WTO) of its intention to continue imposing the QRs on rice.

Serrano, however, could not divulge India’s demands in exchange for its support to the country’s position.

India is the last holdout to the country’s push to preserve its QR on rice. Eight other countries have already approved the Philippines’ request for a seven-year QR extension until 2010. These are China, Canada, Australia, Argentina, Egypt, Pakistan, Thailand and the United States.

Previously, Serrano said the government will consider imposing special safeguard mechanisms (SSMs) for rice if it fails in its bid to maintain the QR on rice.

"One of the Philippine negotiating team’s options in case ongoing talks on QR on rice is not successful is for the government to implement a meaningful special safeguard mechanism that would be outside of the regular price triggers," said Serrano.

He noted that the SSM can also apply to all of the country’s list that are considered sensitive products or agricultural commodities that will continue to be protected either through QRs or though the imposition of tariffs on imported products.

Had the Philippine negotiators failed to get an extension of the QR on rice, National Food Authority administrator Gregorio Tan Jr. said the country can insist on imposing a "seasonal QR" on rice to shield local rice farmers from the influx of cheap imported rice.

"Under the Doha Round talks, developing countries proposed the imposition of a seasonal or shot-term QR on rice and other sensitive agricultural products. For instance, the Philippines can insist that it will curtail the volume of rice imports so as not to depress local rice prices especially during the harvest season," explained Tan.

The country’s QR on rice expired last June 30.