Extension of rice import quota sought

The Philippines may ask for another extension of the rice import quota to at least 2015, National Food Authority Administrator Angelito Banayo said over the weekend.

“The consensus at the Department of Agriculture is to try to seek for an extension of the quantitative restrictions until 2015. I was told [by officials] that they would rather have it extended [as] there are fears that lifting it could negatively impact on the farming sector, Banayo said.

The restrictions, or quota, allow the Philippines to limit the volume of rice that can be imported by the government every year to prevent a possible influx of cheap shipments from abroad. It also serves a protection for local farmers. The quantitative restrictions are set to expire on 2012.

The restrictions also allow the Philippines to keep its required rice importation under the World Trade Organization at a minimum, but not without any concessions to other members of the international trade organization.

Banayo said it was possible that the Philippines would appeal for the extension of the quantitative restrictions within 2011.

He did say what form of concessions the Philippines would give in exchange for the extension.

The Philippines agreed to increase its minimum access volume for rice to 350,000 metric tons in exchange for extending the restriction until 2012.

The MAV refers to the minimum volume of farm produce that the government will allow entry at reduced tariffs.

The government also reduced tariffs on the MAV rice to 40 percent from 50 percent in 2007. Other rice imports were slapped a 50-percent tariff.

(Source: http://www.manilastandardtoday.com/insideBusiness.htm?f=2011/march/28/business4.isx&d=2011/march/28)