EXTENSION OF SPECIAL TREATMENT OF RICE UNDER ANNEX 5 OF THE WTO AGREEMENT ON AGRICULTURE

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EXTENSION OF SPECIAL TREATMENT OF RICE UNDER
ANNEX 5 OF THE WTO AGREEMENT ON AGRICULTURE
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• Why did we request for an Extension
• of the Special Treatment for Rice?
• The Special Treatment for Rice or better known
  locally as Quantitative Restriction (QR) for Rice
  is the most full proof means by which we can
  protect our farmers
• It fully addresses in a more balanced manner the
  interest of farmers vis-a-vis consumers
• We should know the cost before giving it up

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Under the GATT-UR (General Agreement on Tariff
and Trade, Uruguay Round), the Special Treatment
for Rice, technically expired last June 30, 2005.
Under the Doha Round, the Philippine Government
filed its Notification for the Extension of
Special Treatment for Rice Under Annex 5 in 29
March 2004 through the Philippines Permanent
Mission in Geneva, Switzerland.
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ANNEX 5 Special Treatment With Respect
to Paragraph 2 of Article 4 Section B Paragraph
8 Any negotiation on the question of whether
there can be a continuation of the special
treatment as set out in paragraph 7 after the end
of the 10th year following the beginning of the
implementation period shall be initiated and
completed within the time-frame of the 10th year
itself following the beginning of the
implementation period. Section B Paragraph 9 If
it is agreed as a result of the negotiation
referred to in paragraph 8 that a Member may
continue to apply the special treatment, such
Member shall confer additional and acceptable
concessions as determined in that negotiation.
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Approval for our Bid to Extend the Special
Treatment for Rice is subject to Negotiations.
During the Negotiations, other countries
requested for concessions in exchange for the
Philippines Request for Extension of the Special
Treatment for Rice.
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Nine (9) countries signified their intention to
negotiate with Philippines, namely 1.
Argentina 6. India 2. Australia 7.
Pakistan 3. Canada 8. Thailand 4.
China 9. U.S.A. 5. Egypt
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• Concessions Agreed Upon During the Negotiation
  are
• the following
• a) Fundamental Issues
• - QR for rice to be extended for seven (7)
  years or until 2012.
• - Argentina - China - India - U.S.A.
• Canada - Egypt - Pakistan
• b) Country-specific quota (csq) for
• - Australia - 15,000 MT milled basis
• - China - 25,000 MT
• - Thailand - 98,000 MT
• - India - 25,000 MT (not
  notified)
• c) In-quota tariff reduced from 50 to 40 from
  the beginning of the
• extension and until the implementation
  of the extension period.
• d) The Minimum Market Access (MMA) increased to
  350,000 MT

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Commitments for Non Rice Commodities

1/ Most Favored Nation 2/ Common Effective
Preferential Tariff
Source Tariff Commission
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Estimated Landed Cost of Rice at 50 and 40
Tariff vs. Prevailing Wholesale Price of WMR,
Philippines, 2006
As of 21 September 2006
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RICE MMA vs. ACTUAL RICE IMPORTS, PHILIPPINES,
1995-2006 (in Metric tons)
YEAR MMA Actual Volume
MMA/Actual Imports of Imports
1995 (July to December) 29,685
257,263 11.54 1996 61,513
893,654 6.88 1997 65,079
733,381 8.87 1998
97,061 2,126.531 4.56 1999 111,994
833,148 13.44 2000
119,460 631,641 18.91
2001 134,395 754,328 17.82
2002 164,265 1,246,616 13.18 2003
194,135 935,248 20.76 2004
224,005 998,699 22.43 2005
238,940 1,850,706 12.91 2006
238,940 1,606,955 14.87
Note The MMA of 350,000 MT accounts for only 55
and 28, respectively, of the lowest and highest
volumes imported in years 2000 - 2005
contracted in 2006
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THANK YOU