Rice tariff bill hurdles House on third reading

THE House of Representatives passed on third and final reading on Tuesday House Bill 7735, or the “Revised Agricultural Tariffication Act.”
The vote was 200 for, 7 against with two abstentions.
The bill liberalizes private imports of rice in exchange for tariffs, collections from which will create a fund that will improve the competitiveness of the domestic rice industry.
Akbayan Representative Tomasito S. Villarin, who abstained, said: Tariffication alone will not address problems persistently besetting the farming sector.
He added: “It does not guarantee that small rice farmers will ultimately benefit from it nor can they participate in setting policies for the fund.”
He noted the bill should go with the passage of a national land use policy, a ban on land conversions, and the provision of direct farm subsidies.
The bill allows the State to “use of tariffs in lieu of non-tariff import restrictions to protect local producers of agricultural products.”
If enacted, the minimum access volume (MAV) on rice will revert to its 2012 level of 350,000 metric tons (MT) as per Philippine commitments to the World Trade Organization (WTO).
The bound rate for rice import will be set at a 40% Most Favored Nation rate from non-ASEAN WTO-members within the 350,000 MT MAV. Beyond the quota, the tariff is 180% MFN.
Rice imports from ASEAN member countries will be levied duties in accordance with the ASEAN Trade in Goods Agreement.
The National Food Authority is authorized to establish rules governing the rice and corn trade and the collection of corresponding fees and charges.
The measure also gives the president power to make adjustments in the applied rate, or regulate rice exports.
The legislation is a priority measure as certified by the Legislative-Executive Development Advisory Council.
Its counterpart measure, Senate Bill 1839, authored by Senator Sherwin T. Gatchalian, is still pending at the committee level. — Charmaine A. Tadalan