RP urged to reconsider plea for rice protection under AFTA

MANILA, Philippines - Thailand has asked the Philippines to “reconsider” its request asking for continued protection of rice under the ASEAN Free Trade Arrangement (AFTA) which is set to be implemented next year.

In an interview with The STAR, Trade and Industry Secretary Peter B. Favila disclosed that Thailand asked the Philippines to “reconsider” its position on rice during the ASEAN Ministerial Meeting in Bangkok last month.

Both Thailand and Vietnam, Favila said, have indicated that rice is a sensitive issue for them.

Under the AFTA agreement, all member countries are suppose to bring down to between zero to five percent their tariffs on all products by 2010, including those previously placed in the highly-sensitive list.

The Philippines, unfortunately, has requested anew for the exclusion of rice from the full implementation of AFTA next year.

Favila said that negotiations are underway with Thailand and Vietnam with regard to the Philippines’ request.

However, Favila indicated that the negotiations do not involve compensation at this point.

Normally, when a member country invokes continued protection for a product, affected countries can seek “compensation” in the form of offsetting of tariffs for other products.

In fact, Favila indicated that Agriculture Secretary Arthur C. Yap has been tasked to “consult” with rice industry stakeholders to “explain” to them the ramifications of the Philippines’ continued request for exemption of rice from the full implementation of AFTA.