Government eyes safeguard measures vs rice imports

Excessive Importation Hurting Farmers

MANILA, Philippines — The government is looking at imposing special safeguard measures, including anti-dumping duties and penalties, amid the continued influx of imported rice.

Agriculture Secretary William Dar is heeding the calls of stakeholders and the private sector to impose special safeguard measures to ensure that the entry of imported rice does not endanger the local industry.

“We are now studying the possibility of special and general safeguard measures. If there’s excessive rice import, we will limit these,” Dar said.

A special safeguard measure is a government right.

Under the Rice Tariffication Law, the government may “increase, reduce, revise” import duty rates given certain conditions consistent with national interest and the “objective of proecting Filipino farmers and consumers.”

A form of trade remedy, general and special safeguard duties and anti-dumping duties can be temporarily imposed to address market emergencies and unfair trade practices.

By raising tariffs, imports will become more expensive, thereby providing room for local traders to dispose of their stocks and buy again from farmers at higher prices.

Anti-dumping measures are governed by the Anti-Dumping Act of 1999 which was patterned to a large extent after pertinent rules on anti-dumping in the World Trade Organization, wherein the Philippines is a founding member.

The government is also set to impose stricter sanitary and phytosanitary (SPS) measures against imported rice as imports have ballooned to 2.2 million metric tons. Of this, 1.2 million MT had already arrived in the country.

“We have asked BPI (Bureau of Plant Industry) to implement protocol in import regulations regarding pesticide residue, presence of storage pests before the issuance of SPS certificate for imported rice,” Dar said.

DA is also looking at the imposition of a suggested retail price “when figures don’t reflect true value of price” to ensure traders do not take advantage of the situation by managing the inflow of supply to domestic market, thereby causing price to shoot up.

Dar said the government would legislate an  increase in rice buffer stock from 30 days to 90 days to provide higher government budget for buying of palay to ensure better income for farmers.

“We will enjoin LGUs to engage in the business of buying palay, milling, storing, and distributing with the objective of immediately releasing rice stocks so that turnover of the value of rice may be realized, bringing multiple profits to Filipino farmers and other stakeholders,” he said.