Economic managers agreed to lift the protection enjoyed by Filipino rice farmers, which will open the Philippine 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.
The quantitative restriction on rice allows the country to limit the volume of rice imports entering the Philippines.
Pernia, who also serves as the director-general of the National Economic and Development Authority, said the economic managers of the Duterte administration decided to allow the expiration of rice QR in 2017 and not apply for another extension.
“No [extension on QR]. It’s hard because we have given already extensions. I’m sure some people like it extended, but in the opinion of the economic cluster, the economic team, we prefer to just let it go already,” Pernia said at the sidelines of The Philippines Energy and Infrastructure Finance Forum 2016 in Makati City.
Pernia was referring to the economic team including himself, Finance Secretary Carlos Dominguez III, Budget Secretary Benjamin Diokno and Trade Secretary Ramon Lopez.
Pernia said the final decision of the economic team would be released officially after a meeting within the month.
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.
The Office of the Cabinet Secretary also said members of an economic sub-cluster meeting agreed to lift the restrictions on quantity of rice imports.
“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 QR 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 importation in 1995. It was extended in 2004 until 2012, and then was renewed again in 2014.