Thailand wants guaranteed MAV allocation in exchange for rice QR

MANILA, Philippines - Thailand wants a guaranteed purchase of their Country Specitic Quota (CSQ) and  Minimum Access Volume ( MAV) allocation in exchange for their agreement to the Philippines’ request for a further extension of a quantitative restriction (QR) on rice.

This was revealed yesterday by Agriculture undersecretary for Policy Segfredo Serrano who said that the Philippines is currently deliberating on Thailand’s request for an increase its rice CSQ  and MAV, and a guaranteed purchase of the allocation. 

“They (Thailand) are also requesting a guaranteed purchase of their allocation which is, of course, against our procurement law. Even with government-to-government (procurement), there must be a bidding,” he said in an interview yesterday on the sidelines of the Philippine Economic Briefing held in Pasay.  

“If we will still have a QR, we will have the decision on the volume that we will allow into the country. But if we have a  commitment like the MAV, we cannot deny access but it does not mean that there will be a guaranteed purchase. If, for example, the rice will not be profitable to traders, the government will be compelled to buy that. And that is against our procurement law.”  

The Philippines is expected to report in October on the progress of negotiations with WTO member-states on its petition for  the extension of its QR on rice imports until 2017. 

The country is currently engaging Thailand, China, Vietnam, Pakistan, India, Australia, Canada, the United States, and El Salvador.

The Philippines is also engaging non-traditional rice sources such as Pakistan, the United  States and El Salvador because of their right as WTO members to have an opinion on the Philippines’ petition to deviate from its trade commitments.

Serrano said El Salvador is negotiating for a minimal access to the Philippine market for its rice. 

“We need to give due course to all interested parties,” said Serrano. 

In the course of the negotiations, several countries have asked for concessions in exchange for support to the Philippines’  bid for the extension of its special restriction on rice imports.

Some have asked for access to the Philippine market for their farm produce, while some have asked for access or a higher allocation under the rice CSQ quota.

Vietnam, for instance, wants an allocation under the rice CSQ- MAV.  

Serrano said there is little problem with Vietnam’s request. 

“With Vietnam, there is not much problem. We are deliberating on that,” he said. “But we should agree on the number (volume  allocation).” 

The US and Australia, meanwhile, wants market access for their meat, poultry, vegetables, and fruit products.

It will still take some time for the WTO to approve the Philippines’ request after a report has been submitted in October.

Among the general directions followed by the Philippines in the course of negotiations is the inclusion and increase in the  allocation under the CSQ for certain countries and the lowering of the tariff on imports made under the MAV.

Under its commitment to the WTO, the Philippines allows 350,000 metric tons (MT) of rice to enter the country under the MAV at 40-percent duty, while imports outside the MAV are levied a 50-percent tariff.

For this year, the Philippines has an allocation of 163,000 MT for the MAV-CSQ comprising 98,000 MT for  Thailand, 25,000 MT for China, 25,000 MT for India, and 15,000 MT for Australia.