Bangko Sentral ng Pilipinas Deputy Governor Diwa Guinigundo said lifting the quantitative restriction on rice imports will benefit the consumers and make the agricultural sector competitive.
QR on rice allows the country to limit the volume of rice imports entering the Philippines. The quantitative restriction will expire next year and economic managers of the Duterte administration earlier decided to allow the expiration of QR without applying for another extension.
“I think it will benefit the consumers if you do that. The lifting of the QR would mean anybody can import even though you put import tariffs,” Guinigundo said.
“These tariffs could be used by the government for assistance to the agricultural sector in terms of infrastructure, better seedling varieties, irrigation, drying facilities and farm-to-market roads,”
Guinigundo said.
Economic managers earlier approved the lifting of the protection enjoyed by local rice farmers, a move seen to open the domestic market to more rice imports from other countries.
Economic Planning Secretary Ernesto Pernia said the Philippines would no longer apply for an extension of the quantitative restriction on rice imports at the World Trade Organization.
Aside from Pernia, other members of the economic team are Finance Secretary Carlos Dominguez III, Budget Secretary Benjamin Diokno and Trade Secretary Ramon Lopez.
Pernia said the lifting of the rice QR would improve the competitiveness of Filipino rice farmers and make them more efficient.
“[This is] to pressure our farmers to be more efficient. We need competition. When you protect the farmers, they tend to be complacent and there is no pressure. Competition always brings pressure,” Pernia said.
“However, this does not mean an open market domestically, considering the existence of Republic Act No. 8178 or the Agricultural Tariffication Act of 1996,” it said.
The WTO granted the Philippines an extension of its quantitative restriction on rice importation until June 30, 2017 to give local farmers more time to prepare for free trade.
WTO first allowed the Philippines to impose a 10-year QR on rice imports in 1995. It was extended in 2004 until 2012, and then was renewed again in 2014.