Application on Economics

PH to Scrap Rice Import Quota Scheme

01:20 AM September 3rd, 2016
The Duterte administration plans to remove the
Philippines quota on rice importation, a move seen to
help lower the prices of a staple food among Filipinos.
Just last week, the Cabinet has decided to end the
quantitative restriction (QR) on rice, National Economic
and Development Authority (Neda) Director Reynaldo R.
Cancio told an investor conference call late Thursday.
Cancio said repealing the QR on rice would form part of a
strategic trade policy to be pursued by the Duterte
administration aimed at bringing down food prices.
The dismal performance of agriculture needs urgent
attention. To reverse the output decline in the agriculture
sector, a comprehensive agricultural development
program will be pursued. This includes better land
administration, asset reform, improving access to
technology and innovation, and moving up the value
chain, Cancio said.
A repeal of Republic Act (RA) No. 8178 or the Agricultural
Tariffication Act of 1996, which had kept the QR on rice
imports in place, should be pursued to scrap the quota,
he said.

But contrary to Cancios pronouncement, Agriculture

Secretary Emmanuel F. Piol said in a text message that
the removal of the QR system was a matter that has not
been decided yet.
Asked if he would push to scrap the QR, Piol replied: I
wont, but I dont know about the others [other economic
managers].
In 2014, the World Trade Organization (WTO) allowed the
Philippines to extend its QR on rice until 2017 in a bid to
buy more time for local farmers to prepare for free trade
in light of the governments goal of achieving rice selfsufficiency.
Since the government imposes a quota on rice imports,
domestic prices are vulnerable to shocks resulting from
meager supply.
The QR puts the burden of rice supply and demand on the
government as market forces are being limited by the
quota system. The extended QR slaps a 35-percent duty
on imported rice under a minimum access volume (MAV)
of 805,200 metric tons. Importation outside of the MAV
limit are levied a higher tariff of 50 percent.

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Source Of Internet

Summary Of The Article

The Duterte administration plans to remove the
Philippines quota on rice importation, a move seen to
help lower the prices of a staple food among Filipinos.
Just last week, the Cabinet has decided to end the
quantitative restriction (QR) on rice, National Economic
and Development Authority (Neda) Director Reynaldo R.
Cancio told an investor conference call late Thursday.
Cancio said repealing the QR on rice would form part of a
strategic trade policy to be pursued by the Duterte
administration aimed at bringing down food prices.
Since the government imposes a quota on rice imports,
domestic prices are vulnerable to shocks resulting from
meager supply.
The QR puts the burden of rice supply and demand on the
government as market forces are being limited by the
quota system. The extended QR slaps a 35-percent duty
on imported rice under a minimum access volume (MAV)
of 805,200 metric tons. Importation outside of the MAV
limit are levied a higher tariff of 50 percent.

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http:www.business.inquirer.net

Critique/Reaction Paper

My Reaction About PH to Scrap Rice

Import Quota Scheme is to low the
rices of the rice so that the more
people to buy their own rice so that
the poor people will get their own
food.So that the Duterte
Administrationplans to remove the
Philippines quota on rice importation,
amove seen to help lower the prices
of a staple food among FILIPINOS.