Abono party-list calls for inquiry on QR negotiations

DAGUPAN CITY, Philippines —The Abono party-list is asking the House of Representatives and the Senate to conduct an inquiry on the negotiators responsible for the negotiations of extension on the quantitative restrictions (QR) on rice from year 2000 to June 2012.

Abono Party-list chairman Rosendo So said that Agriculture Undersecretary Segfredo Serrano should explain the rice and non-rice concessions arrived at during the negotiations for 2005-2012 extension on QR for rice.

He said that rice farmers, hog farmers and poultry raisers were not consulted by Serrano when their sector was used as bargaining chips in the said negotiations.

So said that rice concessions involving the lowering of tariff and the increasing minimum access volume (MAV) on imported rice for the World Trade Organization (WTO) to grant the country an extension to the QR on rice must be probed.

The MAV refers to the minimum volume of farm produce allowed to enter into the Philippines at reduced tariffs while the QR allows the Philippines to impose higher tariff on rice imports beyond a certain volume to prevent the influx of cheap rice imports.

So said that the present 40 percent tariff on imported rice is useless and does not benefit the government’s revenue raising program because rice importation by the National Food Authority (NFA) is subsidized by the Department of Finance (DOF).

He also said that the farmers are being fooled by policymakers that if the QR on rice is not extended, the local rice industry will collapse because of the possibility of a surge in the entry of cheap imported rice.

“What they are telling the farmers is false that imported rice would flood the Philippines if the extension on QR on rice would not push through because it is only the NFA that imports rice and the volume of imports is based on stock inventory,” he said.

He added that MAV for rice started with 57,730 metric tons with 50 percent tariff in 1995 up to 1999 and it is now 350,000 metric tons with 40 percent tariff since 2005 up to 2012.