RP wants 35% tariff on rice maintained until 2015

MANILA, Philippines – The Philippines wants the tariff rate of 35 percent on rice maintained until 2015 under the  ASEAN Free Trade Arrangement (AFTA) which would likely go into full implementation next year.

Under the AFTA, all member nations are supposed to bring down their Common Effective Preferential Tariffs (CEPT) to between zero to five percent for all products, including those previously deferred under the sensitive and highly-sensitive list.

However, in an interview with Agriculture Secretary Arthur C. Yap Friday night, he revealed that the Philippines has invoked a special protocol for the exclusion of rice under the AFTA.

Yap said the Philippines initially requested to be allowed to keep a 35 percent tariff cover on rice imports up to 2018.

However, upon the request of Thailand, the Philippines had agreed to revise its request to keep the 35 percent tariff on rice only up to 2015.

If Thailand does not accept the Philippines’ position, Yap said, “then we talk about it.”

Yap acknowledged that while Thailand has stated that rice is a sensitive issue for them, the same is true for the Philippines.

“It is sensitive also for us,” Yap pointed out.

Trade and Industry Secretary Peter B. Favila earlier revealed that Thailand asked the Philippines to “reconsider” its position on rice during the ASEAN Ministerial Meeting in Bangkok last month.

Both Thailand and Vietnam, Favila said, have indicated that rice is a sensitive issue for them.

However, Favila indicated that the negotiations do not involve compensation at this point.

Normally, when a member country invokes continued protection for a product, affected countries can seek “compensation” in the form of offsetting of tariffs for other products.

While the Philippines produces rice, it has now become a major importer of rice which it sources from Vietnam, Thailand and Pakistan.

In fact, the Philippines’ rice importations is now considered a major market mover, jacking up global rice prices last year during a rice supply crisis.