Trade official opposes QR extension for rice

WITH disagreements between government agencies on the extension of the quantitative restriction (QR) on rice, a trade official hopes Philippine agriculture can better compete and no longer seek for extension.

Bureau of Internal Trade Relations Senior Trade Industry Development Specialist Leodegario C. Alabarca Jr. said that while the Department of Trade and Industy (DTI) has not interferred with the issue yet, liberalizing rice trade, despite “unreadiness” of some Filipino farmers, will force them and the government to become competitive.

“Better stop it. Let’s fight the bullet. Kanus-a pa man ta mo-compete sa ila? Dugay nata, since 1995 we’ve been telling nga competitive na ta, but walay nahitabo. (When will we start competing with others? We have been telling them since 1995 to be competitive but nothing has been done.) Maybe the government will be forced to come up with bold measures for the rice farmers,” Alabarca said in an interview at the sidelines of DTI’s World Trade Organizatiom (WTO) National Advocacy and Consultations Program (NACP).

Until now, the National Economic Development Authority (Neda) and the Department of Agriculture (DA) are in opposing views on the extension, which is set to expire by July 1, 2017, said Alabarca.

Neda Secretary Ernesto Pernia previously said that he will not seek to extend the QR on rice. He reasoned out that economic ministers of WTO-member countries already oppose the extension.

In 2014, the Philippines under former president Benigno Aquino III won approval of the WTO to keep import restrictions for three more years to June 2017.

However, Agriculture Secretary Manny Piñol stated that it will pursue a two-year extension on the QR to prepare farmers to compete with other Association of Southeast Asian Nations (ASEAN) rice-producing countries.

Piñol said that removing the QR will hurt local farmers instead, and that they are not yet ready to compete with cheap imports.

For Alabarca, asking for another extension will press other countries to request the Philippines to lower their tariffs on other commodities. Hence, he believes that the Philippines can no longer seek another extension.

The removal of the QR is also believed to lower prices of rice, which is deemed beneficial to consumers.