Gov’t mulls hike in rice import quota

MANILA, Philippines - The government is still studying the demands of rice exporting countries to increase the country-specific quota on rice imports as well as the lowering of tariffs as it continues negotiations for the extension for the quantitative restriction (QR) on rice imports until 2017.

The government is asking the World Trade Organization (WTO) to be allowed to keep a high duty of 40 percent on rice entering the country under the minimum access volume (MAV)  until 2017  to enable the local rice industry to become competitive when free trade is implemented in the regional bloc.

The country’s QR on rice stipulates that imports outside the 350,000 metric tons MAV are slapped a higher tariff of 50 percent.

Agriculture Secretary Proceso Alcala said the Philippines is not yet keen on demands of other countries to increase the country-specific allocations and lower tariff.

“We continue to negotiate because we are still hoping for the best,” said Agriculture Secretary Proceso Alcala. “There will always be demands like that but it will be up to us if we will give in.”

Talks are ongoing with countries like the US, Canada, Thailand, Vietnam, Cambodia and El Salvador

Should the country’s bid for the extension of its QR on rice, the Philippines would be bound by conditions under the ASEAN Trade In Goods Agreement (ATIGA) which stipulates that a reduced tariff of 35 percent would be imposed on all Philippine rice imports as whatever volume.

The country intends to surpass the 2012 rice production of 18 million MT by producing 20 million MT this year.

Rice imports have been reduced from a high of 2.4 million metric tons in 2010 to 860,000 MT in 2011, and 500,000 MT last year.

The Philippines is also preparing for the exportation of premium rice this year.

Around 50 to 100 metric tons (MT) of premium rice varieties would be shipped to Hong Kong, Macau, and Europe within the year.

To be shipped are heirloom rice varieties from Benguet as well as colored rice varieties from Quezon province and Mindanao region.