Agri Dept.: PHL may give up quantitative restrictions on rice if it proves costly

Philippines may give up the quantitative restrictions (QR) on rice, which protects local farmers from the influx of cheaper imported rice, “if the stakes are too high,”  the Department of Agriculture said Tuesday.

 

"If it will cost us an arm and a leg, we might have to let it go,” Agriculture Secretary Proceso Alcala said in an interview with reporters.

 

The Philippines is now trying to extend the QR on imported rice, talking to other members of the World Trade Organization, which deals with the rules of global trade between nations.  

 

“We're praying that these countries asking for concessions will be considerate enough to allow us to breathe and get our acts together to support the local rice sector. We just hope they will not impose rigid requirements," said Alcala.

 

The Philippine team, co-chaired by Agriculture Assistant Secretary Romeo Recide, already left for China to find out the specific demands of Beijing in exchange for Manila’s request to extend the protectionist policy.

 

"There are countries with specific demands–like China, the US and Australia. But there are also countries who are not asking for any concession like the European countries," said Alcala.

 

The United States, Canada, Thailand, Vietnam, Pakistan, India, China, El Salvador, and Australia are keen to review Manila's request.

 

Of the nine countries, Pakistan, India, Vietnam, Thailand and China have formally relayed their intention to the Philippine government to negotiate its bid for the extension of the rice policy.

 

The Philippines wants the protectionist policy on rice, which will expire next June, extended for three years or until 2015. It filed the request with the WTO on Nov. 18, 2011.

 

The QR allows the Philippines to limit the volume of rice that enters the country, thus preventing the influx of cheap rice imports.

 

During the negotiations for extending the QR on to 2012, the Philippines agreed to increase its minimum access volume (MAV) for rice to 350,000 metric tons (MT) as a concession. MAC refers to the volume of farm produce it will allow to enter into the country at reduced tariffs.

 

This time, the Philippine government fears that trading partners may ask for concessions against the wine and dairy sectors.

 

Manila wants the QR extended, citing the need to prepare Filipino farmers for international trade and to achieve rice self-sufficiency by 2013. —VS, GMA News