MANILA, Philippines – The country’s policy on rice imports remains in limbo as the Department of Agriculture (DA) is just starting to review the possible extension of the quantitative restriction on the main Filipino staple food.
“There’s no decision yet. We are doing consultations nationwide with the stakeholders. There are ways to hack it through renegotiations,” Agriculture Undersecretary for Policy and Planning Segfredo Serrano told reporters.
Agriculture Secretary Emmanuel Piñol has made public his stand on seeking another extension of the QR by least two more years.
Should the Philippines decide to extend the QR, World Trade Organization (WTO) member-countries that wish to seek concession for allowing the extension would have to negotiate with the country, which would normally take at least one year of negotiations.
In 2014, the Philippines under former president Benigno Aquino III won approval of the WTO to keep import restrictions for three more years to June 2017. The previous administration took two years to renegotiate the extension.
“If it would be painless and just extend for two years, then we retain the same concession. If they (WTO members) will ask for more in terms of rice, we don’t have a problem if it’s reasonable. But, they could ask conceivably concessions outside of agriculture which we may be sensitive,” Serrano said.
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He said Congress would need to amend the Agricultural Tariffication Act. Under the law, only rice is protected by the QR and it did not specify an end-date for this provision.
“They have to amend the laws. The tarrification act has no expiry date so even if our right to the waiver expires, the department is duty bound to implement the provisions of the law,” he added.
Serrano emphasized if the QR is lifted, approximately three to five million metric tons of rice would enter the market.
“If you have that extra demand in a free market like the international rice market, could you imagine what would be the impact of that on the international prices? It is not true that the price will really be cheaper,” Serrano said.
“You should not only look at the price of rice in the market but you should look at the long term impact of this move to Philippine agriculture, especially the rice industry,” Piñol added.
The agri chief stressed the current cheap price of rice is primarily because of local competition but once neighboring rice-producing countries like Vietnam and Thailand learn the lack of supply in the country, they will immediately hike their prices.
Earlier, Socioeconomic Planning Secretary Ernesto Pernia has maintained the government would import more rice to comply with the WTO agreement to lift barriers on the staple food despite opposition from the DA.
