Sinag backs lifting of rice import restrictions

MANILA, Philippines – Farmers have changed tone and are now backing the government’s plan not to extend a cap on rice imports after it expires next year, provided conditions are in place.

“Lift rice QRs and impose the maximum possible tariff line to rice, at the current international price of rice, the tariff should be at least 50 percent and re-impose to 40 percent the tariff on pork offals,” said Rosendo So, chair of the Samahang Industriya ng Agrikultura (Sinag).

Since 2004, rice shipments had been subject to quantitative restrictions (QR) in a bid to protect local farmers from cheaper rice abroad.

The latest extension of the measure, which is being applied before the World Trade Organization (WTO), will expire in 2017 and Socioeconomic Planning Secretary Ernesto Pernia said it would not be renewed.

This, even as Agriculture Secretary Emmanuel Piñol earlier said he would bat for its extension, which slaps a hefty 35 percent duty on rice shipments.

But for Sinag, So said farmers would agree to lifting QR, provided they would be protected through a state-led comprehensive rice program

“Revenue generated from rice import tariffs should exclusively be allocated in implementing a comprehensive government program across the whole supply chain of the rice industry,” he said.

“That will re-develop our capacity to produce our own staple and food requirements,” he said.

This, he said, should come on top of better implementation of laws preventing rice smuggling, and quarantine and food safety regulations, as well as strengthening of government regulatory functions.

Pernia has repeatedly said the National Food Authority would ditch its commercial functions and just serve as an overseer of the rice industry.

Sinag added there should be special safeguard mechanisms to protect the local rice industry against import dumping, import surges and global price discrimination.

The WTO has recognized the sovereign rights of governments to impose import bans and restrictions, including unilaterally imposing higher tariffs, in the face of economic and social crises caused by import surges or import dumping.

Data showed rice exports went down 12 percent for exporting countries last year, while its value also dipped 18 percent to $26 billion worth of exported rice in 2014.