NFA looks at options to extend rice import limits

The National Food Authority (NFA) will explore options to gain a three- year extension over the limit on rice volume that may be imported or the quantitative restriction (QR) that will expire next June. “The instruction of (Agriculture Secretary Proceso J. Alcala) is to seek the extension of the QR. We will initially do spadework to determine the position of WTO (World Trade Organization) members on the extension," said NFA administrator Lito Banayo in a text message to reporters Wednesday. QRs are trade measures protecting local industries from cheaper, imported products. However, the WTO sees QRs as anti-free trade and cause market distortions in commodity prices and supply. The NFA chief said Filipino farmers need more time to prepare for the impact of international free trade in rice. Banayo said “quiet consultations" are needed to determine if countries that export rice to the Philippines have any concessions they might consider in exchange for keeping the QR on rice in place for another three years. Banayo said it is likely that the government will inquire with the WTO countries that agreed to extend the QR when it expired in 2005. Back in March 2004, the country notified the WTO of its intention to extend the restriction on rice imports before it was set to end in June 2005. The Philippines then negotiated the United States, China, India, Argentina, Pakistan, Egypt, Canada, Australia and Thailand. After the talks, the Philippines raised its minimum access volume (MAV) for rice to 350,000 metric tons (MT) as a concession. In 2007, rice tariffs were reduced to 40 percent from 50 percent. Some countries added access to the Philippine wine and milk markets to their list of concessions. — ELR/VS, GMA News