RP-Thai rice pact a done deal

The compromise on rice tariffs with Thailand will benefit the Philippines, the Trade department said on Tuesday, ahead of its finalization at an Association of Southeast Asian Nations (ASEAN) ministerial meeting today. The deal allows the Philippines to keep protecting rice farmers with a 40-percent tariff on competing imports until 2015. It also assures supply for the country in case global supply tightens, the department said in a statement. "When ASEAN economic ministers meet on April 7 in Hanoi in preparation for the 15th ASEAN Summit on April 8-9, Trade Secretary Jesli A. Lapus and his Thai counterpart will jointly announce the finalization of memorandum of understanding on rice between the Philippines and Thailand," the agency said. Under the deal, the Philippines will keep a tariff of 40 percent on its rice imports from the ASEAN until January 1, 2015, when the rate will be reduced to 35 percent. In exchange, the Philippines will provide Thailand a duty-free quota of 367,000 tons a year, which the National Food Authority will buy as needed at competitive prices. "In a sense, it is actually a stand-by commitment of Thailand to supply said amounts. On the other hand, it helps the Philippines smooth out any short-term shortages that we may encounter, without any prejudice to the selling by our rice farmers," the department said. — Jessica Anne D. Hermosa, BusinessWorld