Philippine President To Sign Order On Cut In Rice Import Tariff

Philippine President Gloria Macapagal Arroyo is expected to sign soon an executive order that will reduce the country's rice import tariff from 50% to 40%, a senior agriculture official said Tuesday. The tariff reduction is part of concessions to the World Trade Organization the Philippines has committed to in exchange for an extension of the country's quantitative restrictions on rice imports, said agriculture undersecretary Segfredo Serrano. 
 
The president is likely to sign the executive order before the end of July, when Congress is scheduled to resume session. The lower tariff of 40% on rice imports will be maintained until 2012, when the country's quantitative restrictions will finally be lifted, after which the country must liberalize rice trade. 
 
Through quantitative restrictions, the government can set a limit on the country's annual rice import volumes, preventing a possible influx of cheaper imports. Last December, the Philippines formally obtained approval from the WTO for an extension of its quantitative restrictions, which expired in June 2005. 
 
A major importer of rice in Asia, the Philippines plans to bring in 1.7 million MT of rice this year.