Author: Cai Ordinario
Any views expressed in this article are those of the author and not of Philippine Statistics Authority.
Setting a tariff schedule on the country’s rice imports could lead to more stable international rice prices moving forward, according to the Asian Development Bank (ADB).
In an interview at the sidelines of the recently concluded ADB Annual Meeting in Manila, ADB Philippines Country Director Kelly Bird told the BusinessMirror that the Manila-based multilateral development bank supports the government’s move to finally end its quantitative restrictions on rice. The Philippines is converting its QR on rice into a tariff schedule in compliance with commitments to the World Trade Organization (WTO).
“By converting to a tariff, and you’re allowing importation of rice, then you generally have more stable prices. You have stable supply. And then I guess the tariff would be set so that it also encourages the domestic price of rice. It is a much more preferred approach to managing a particular sector, particularly the agriculture sector,” Bird said.
Bird added a QR would cause more volatility in the international market because it pegs commodity prices to a certain level. This prevents prices from adjusting to the demand for certain commodities.
Further, Bird said setting a tariff would boost local production because there is more stability in the global and domestic markets.