MANILA – The National Food Authority on Friday said it will not issue import permits for rice in excess of the Philippines’ minimum access volume, even though the quota for the staple ends on June 30.
Angelito Banayo, administrator of state-run NFA, told reporters that the agency will observe the MAV pending the results of negotiations with other countries opposed to an extension of the Philippines’ quantitative restriction on rice.
“We will not accept any application that is outside MAV. We’ll see if there will be a reaction from the exporting country,” Banayo said.
“Any attempts, if ever, to ship cheaper rice outside the allowed volume, they will still have to pay the higher tariff rate,” he said.
MAV is the minimum volume of rice allowed to enter the Philippines at reduced tariffs.
The country’s MAV is set at 350,000 metric tons, which is slapped an import duty of 40 percent.
Banayo said rice-exporting countries may appeal the Philippines’ quantitative restriction before the World Trade Organization, adding that the government will have to wait for a decision from the global trading body.
“This will test how the WTO decides on the issue,” he said.
The Philippines has asked other Asean member-countries as well as other major trade partners for the retention of the QR on rice, citing the need to prepare Filipino farmers for international competition and the government’s goal of rice self-sufficiency.
An extension of the QR will allow the Philippines to limit the volume of rice imports, preventing the influx of cheap rice from other countries.
The government is asking for a five-year extension, but like Korea, may get a three-year extension.
As in previous bids to extend the rice QR, Manila has offered other rice-producing countries certain trade concessions, such as greater access to the Philippine market of other products.
China, India and Pakistan earlier objected to the Philippine bid for an extension of the rice QR.
source: interaksyon.com
