RP-Thailand rice tariff talks to be completed
JESSICA ANNE HERMOSA, BUSINESSWORLD
12/01/2009 | 01:41 AM
Talks between the Philippines and Thailand regarding rice tariffs will be completed soon and are no longer likely to derail a regional trade pact, a senior government official said late last week.
A draft agreement in the works is expected to address the remaining concerns Thailand has raised on technicalities such as requirements for rice shipping and bid guarantees, Assistant Secretary Ramon Vicente T. Kabigting said.
As such, the Philippines may continue protecting local rice farmers with a 40 percent tariff on competing imports which will later come down to 35 percent in 2015.
"I’m confident we can find a solution to the rice issue very soon which will pave the way for the [Association of Southeast Asian Nations Trade in Goods] agreement implementation," Mr. Kabigting said in a telephone interview on Friday.
The regional deal consolidates earlier commitments made for the ASEAN Free Trade Area. It provides that tariffs on all goods except sensitive ones be brought down to 0-5 percent by January 1.
The Agriculture department, Mr. Kabigting said, is already drafting the memorandum of agreement wherein the Philippines "invites Thailand to commit to supply [a certain volume exempted from tariffs]."
The Southeast Asian neighbor will also be allowed to supply beyond the quota if it wins in the auctions.
It states, however, that Thailand cannot compel the Philippines to make purchases if prices aren’t competitive.
The agreement will also address technicalities Thailand wants to clear up: that guarantees for private sector bids need not come from the state and shipping can be outsourced to private freighters.
Philippine rules already state this, Mr. Kabigting said.
"These are the issues the Thai government raised and I feel the Philippine side can draft solutions, and we feel our tariff for rice will be respected," the trade official said.
Agriculture Undersecretary Segfredo R. Serrano declined to comment on the draft, saying he was busy at the World Trade Organization ministerial conference in Geneva. - BusinessWorld
A draft agreement in the works is expected to address the remaining concerns Thailand has raised on technicalities such as requirements for rice shipping and bid guarantees, Assistant Secretary Ramon Vicente T. Kabigting said.
As such, the Philippines may continue protecting local rice farmers with a 40 percent tariff on competing imports which will later come down to 35 percent in 2015.
"I’m confident we can find a solution to the rice issue very soon which will pave the way for the [Association of Southeast Asian Nations Trade in Goods] agreement implementation," Mr. Kabigting said in a telephone interview on Friday.
The regional deal consolidates earlier commitments made for the ASEAN Free Trade Area. It provides that tariffs on all goods except sensitive ones be brought down to 0-5 percent by January 1.
The Agriculture department, Mr. Kabigting said, is already drafting the memorandum of agreement wherein the Philippines "invites Thailand to commit to supply [a certain volume exempted from tariffs]."
The Southeast Asian neighbor will also be allowed to supply beyond the quota if it wins in the auctions.
It states, however, that Thailand cannot compel the Philippines to make purchases if prices aren’t competitive.
The agreement will also address technicalities Thailand wants to clear up: that guarantees for private sector bids need not come from the state and shipping can be outsourced to private freighters.
Philippine rules already state this, Mr. Kabigting said.
"These are the issues the Thai government raised and I feel the Philippine side can draft solutions, and we feel our tariff for rice will be respected," the trade official said.
Agriculture Undersecretary Segfredo R. Serrano declined to comment on the draft, saying he was busy at the World Trade Organization ministerial conference in Geneva. - BusinessWorld
