The Federation of Free Farmers (FFF) questioned the legality and effectiveness of Executive Order (EO) 105, which introduces variable tariffs on rice imports, calling the measure “largely cosmetic” and unlikely to stop the influx of cheap imported rice once the current import ban is lifted.
The group accused the Department of Economy, Planning and Development (DEPDev) Board, which recommended the variable tariff scheme, of timing its action to coincide with Congress’ recess.
FFF national manager Raul Montemayor said the “economic managers have habitually ignored the law and played around with the rules to get what they want.”
FFF said the EO, issued on Nov. 7, 2025, was released without the required consultations with stakeholders as mandated under Section 1608 of Republic Act 10863, or the Customs Modernization and Tariff Act (CMTA).
The group said the variable tariff mechanism, which provides for tariff adjustments of 5 percentage points for every 5 percent change in international rice prices, would not effectively curb the surge in cheap imports triggered by the earlier Executive Order 62, which slashed rice import tariffs from 35 percent to 15 percent in July 2024.
Montemayor said that any subsequent change in international prices would simply be offset by an adjustment in tariffs, resulting in a net effect of zero and allowing low-priced imports to continue depressing local prices.
The resulting oversupply, FFF said, drove domestic palay farmgate prices down to as low as P8 per kilogram, well below the average production cost of P14.50 per kg.
The group warned that the measure could expose the Philippines to trade disputes, citing World Trade Organization (WTO) rulings that have declared similar variable tariff schemes illegal.
They cautioned that other countries might retaliate by imposing their own variable tariffs or import restrictions on Philippine exports. The FFF also expressed concern that future tariff adjustments might face delays due to the procedural requirements prescribed under the CMTA.
