Philippines, Thailand Working To Resolve Tariff Issues

According to media reports, Philippines and Thailand are nearing a compromise to end a dispute on rice tariffs by considering a new draft deal in which Thai exporters are likely to get a quota in exchange for exempting Philippine rice when a regional trade deal brings down tariffs on almost all goods in January next year.

A new draft agreement will be presented to Thailand next week, after it rejected an initial deal because of disagreements over the quota size.

Thailand had earlier demanded that Philippine rice tariffs be lowered next year under the free trade area of the Association of Southeast Asian Nations (ASEAN), or be allowed to sell duty-free under a quota. The Thais had threatened not to sign the ASEAN Trade in Goods Agreement, which will replace the existing legal framework for the regional free trade area, over the dispute.