RP urged to propose Asean rice talks amid OREC threat

(Updated 10 p.m.) MANILA, Philippines - Senator Manuel A. Roxas II has urged the Philippine Department of Foreign Affairs (DFA) to formally propose a summit on rice and food security among leaders of the Association of Southeast Asian Nations (Asean). Roxas made the call amid the plan of Thailand, and four other Mekong countries — Burma, Cambodia, Laos, and Vietnam — to set up a rice cartel resembling the Organization of Petroleum of Exporting Countries’ oil cartel. He said that before Thailand and the four other countries could finally institutionalize the Organization of Rice Exporting Countries (OREC), “the Asean community must weigh in as a regional bloc to obtain trade privileges with its fellow members in keeping with the Asean spirit." “Neglecting to act as a regional bloc amid a rice and food crisis can raise doubts in the minds of other world leaders on Asean’s determination to pursue economic integration," Roxas, chairman of the Senate Committee on Trade and Commerce, said in a statement. Thailand, the world’s largest rice exporter, which ships out some 9 million tons of the staple annually, earlier said it might not participate in the new rice tender by the Philippine government because it didn’t have a policy to sell the staple through government channels. Thailand had long thought of forming the OREC. The country’s prime minister, Samak Sundaravej, earlier said OREC could help major rice-producing countries in the region increase their bargaining power in the world market. No threat On Friday, President Gloria Macapagal Arroyo assured that the country had enough rice supply for the rest of the year. She said the Philippines should not be threatened by major rice-producing countries to limit, if not ban, sales of the staple. "We are now in a vastly improved position to weather the storm than at any other time in the recent history. I’ve seen this [perceived rice crisis] coming for some time now, certainly before the world took notice," Mrs Arroyo said in a speech before members of the Federation of Philippine Industries in Makati City. The President said both Thailand and Vietnam had sealed 1.2- million metric ton contracts with the Philippines, and this is enough to cover the 10% differential between production and consumption. The Agriculture Department said the country is 90% self-sufficient in rice. Iron-clad? But Roxas said that even if Vietnam and Thailand had agreed to accept the Philippines ’ order for 1.2 million metric tons of rice, the government should still confirm whether such shipments are “iron-clad despite the formation of OREC." “We need to see the bill of particulars governing these orders to check whether there are fixed dates for delivery and a firm, iron-clad commitment to meet the order," Roxas added. He said the DFA should seek a briefing from the Thai Embassy on how the creation of an OREC would affect rice importing countries such as the Philippines. “Given the cordial relations between and among the Philippines and these five ASEAN countries, we should take a more proactive role in clarifying the role of OREC and whether it is prepared to give concessions to fellow ASEAN members," Roxas said. A billion people Meanwhile, the Asian Development Bank estimates that more than a billion poor people in Asia who live on a dollar a day or less are in danger because of skyrocketing prices of staples such as rice. The World Food Program says rice prices have more than doubled in just five weeks, sometimes causing violent protests in Asia, as well as Africa and the Caribbean. So when the Asian Development Bank holds a meeting here next week that was supposed to focus on its internal workings and long-term strategy, it now has an immediate crisis on the agenda: soaring food prices. “This is a very serious situation for the poor in Asia," the ADB’s managing director general, Rajat Nag, told a briefing in Madrid, as the bank’s board of governors prepared for their annual meeting on Monday and Tuesday. “At this meeting we expect discussions to center around the food crisis," Nag said. “More than a billion people are vulnerable." - GMANews.TV, with reports from BusinessWorld, AP