Rice QR ends today

With the expiration of the quantitative restriction (QR) on rice today, June 30, the government will continue to implement current regulations pending the negotiations with other countries supporting Manila’s appeal with the World Trade Organization (WTO) on the extension of the special restriction on rice imports.

The current QR has set a minimum access volume (MAV) of 350,000 metric tons of rice imports subject to 40 percent duty. Imports outside of MAV are slapped a 50 percent tariff.

The government wants to extend the QR, which was approved by the WTO in 2006, to prevent a surge in cheap rice imports that could hurt the local rice industry. The QR allows the Philippines to impose higher tariff on rice imports beyond a certain volume.

In November last year, the government formally signified to the WTO its intention to start talks on extending the QR on rice. Countries that expressed interest in negotiating for an extension of the QR are United States, Canada, Thailand, Vietnam, Cambodia and El Salvador.

Extending the QR would allow the Philippines to limit the volume of rice that can enter the country every year, preventing the entry of cheaper rice from other countries.

To convince other countries to support the extension of the QR, the government could offer market access for the importation of other products.

National Food Authority (NFA) chief Lito Banayo said the government would prefer to allow importations within the MAV.

“The countries are asking for additional MAV quotas, higher than present. If agreements are not reached, then the QR will be lifted, and there will be no regulation of volumes of rice that can be brought in, other than tariffs,” Banayo said.