House OKs on final reading bill on rice tariffication

The House of Representatives on Tuesday approved on third and final reading a measure seeking to replace quantitative import restrictions on rice with tariffs.

With a vote of 200 in the affirmative, seven in the negative and two abstentions, the chamber approved House Bill 7735, or the proposed "Revised Agricultural Tariffication Act," which President Rodrigo Duterte urged Congress to immediately pass during his third State of the Nation Address.

The measure primarily aims to protect producers of agricultural products, ensure food security, and provide for a viable and globally-competitive agricultural sector.

It is also seen to stabilize rice prices and address artificial rice shortage.

Under the bill, a maximum bound rate commitments of the Philippines under the World Trade Organization (WTO), or tariffs, will be imposed on agricultural products instead of quantitative restrictions.

Quantitative restrictions are the non-tariff restrictions used to limit the amount of imported commodities, which includes discretionary import licensing and import quotas.

The corresponding tariffs will be imposed by the President.

In terms of quantitative restriction on rice, the maximum bound rate will be as notified by the Philippines to the WTO.

The bound rate of rice imported in the Philippines will be as follows:

40 percent Most Favored Nation rate for importation within the 350,000 metric tons MAV from non-ASEAN WTO member countries; and 180 percent MFN quota tariff rate.

Once the measure is enacted into law, the maximum access volume on rice will revert to its 2012 level at 350,000 metric tons as indicated in the country’s commitment to the WTO.

Progressive lawmakers from the Makabayan Bloc, however, opposed the approval of the measure.

"Our farmers oppose this bill because rice tariffication will toll the demise of our rice industry and the further immiseration of our rice farmers," Anakpawis party-list Representative Ariel Casilao stated in opposing the bill.

"This bill totally abandons our rice farmers, in favor of rice importation, in favor of rice traders and hoarders at home and in favor of rice farmers of Vietnam and Thailand," he added.

For her part, Gabriela Women's Party Rep. Emmi De Jesus said that contrary to promises of the bill, it would only cause rice prices to go higher and cripple local production of rice.

"Sa ilalim ng panukalang batas, tatanggalin ang rice-import quota at papalitan ng tariff rates para sa imports," she said.

"Lalong babaha ang imported na bigas na lalong pipilay sa lokal na produksyon ng palay," she added.

The National Economic Development Authority has also expressed its support for the measure.

It said the bill will be a "viable solution to temper inflation and improve the agriculture sector." — MDM, GMA News