The Philippines assured trade partners that its rice tariff system, which adjusts to international price movements, ensures transparency and predictability.
In a response to queries to the Philippines’s 6th Trade Policy Review (TPR) at the World Trade Organization (WTO), Manila said Executive Order (EO) 105 introduced a rules-based mechanism wherein rice tariffs adjust automatically within a defined band of 15 percent to 35 percent effective 2026.
‘This approach ensures transparency and predictability for trading partners, while allowing the Philippines to respond in a timely and calibrated manner to global market developments and domestic food security needs,’ the Philippines said, in reply to questions from the European Union.
During the country’s 6th TPR, the EU asked how the variable tariff system introduced this year could ensure predictability for trading partners.
Manila also said adjustments are made on a quarterly basis and rely on publicly available price data, with published schedules for tariff changes.
The Philippines told trade partners like Malaysia that it could balance food security objectives with market liberalization triggered by the Rice Tariffication Law (RTL) through the adoption of a ‘calibrated approach.’
Manila said officials are closely monitoring market movements and activate appropriate measures when predefined trigger points are reached.
‘This ensures that adequate supply is maintained in the domestic market, while avoiding excessive imports that could adversely affect local producers,’ it said.
‘Through this approach, the Philippines seeks to safeguard both consumer welfare-by ensuring stable and affordable food supply-and the livelihoods and incomes of domestic farmers.’
EO 105 issued by the Philippine government came into force early this year. It stipulates that tariffs will be adjusted by 5 percentage points per 5 percent adjustment in international prices.
At present, the tariffs levied on rice remain in status quo, which is 15 percent.
‘Market efficiency’
The Philippines stressed that the RTL improved market efficiency by replacing quantitative restrictions with a tariff-based import regime consistent with its WTO commitments.
Aside from helping stabilize domestic stockpiles, the country said it also generated tariff revenues that bankroll the Rice Competitiveness Enhancement Fund (RCEF), which aids in farm mechanization, credit assistance, high-quality seed development, and extension services.
The Philippines also said certain measures complement tariffication, such as the sourcing of rice buffer stocks by the National Food Authority (NFA) from local farmers and targeted interventions to address market disruptions.
‘These measures are intended to balance the interests of consumers and producers while ensuring an adequate and stable rice supply,’ Manila said, in response to questions from Phnom Penh.
In the medium-term, the Philippines said it will continue to implement a tariff-based rice import regime and monitor domestic and international market developments.
If deemed necessary, Manila said it would undertake ‘measures consistent with its international obligations to support food security, promote market stability, and enhance the long-term competitiveness of the domestic rice sector.’
Assistance
Meanwhile, Executive Secretary Ralph G. Recto said the Marcos administration’s rice program addresses the twin goals of providing free rice to nearly eight million vulnerable families nationwide and supporting Filipino farmers by buying their harvests.
Recto made the assurance as he led the distribution of 10 kilograms of rice each to 1,500 families in Quezon, Bukidnon and turned over Socio-Civic Projects Fund (SCPF) checks to all 464 barangays in the province.
The activity marked the first of four rounds of rice distribution in the municipality of Quezon under the Bawat Bayan Makikinabang Rice Distribution Program. Upon completion, 8,000 families in the municipality will each receive 10 kilograms of rice every two months.
‘Dala rin po namin ngayong araw ang rice program ng Pangulo para matiyak na walang Pilipinong magugutom. Sa buong Pilipinas, halos walong milyong pamilya ang makikinabang,’ Recto said.
‘At ang maganda sa programang ito, ang bigas na matatanggap ninyo ay galing mismo sa ani ng ating mga magsasaka,’ he added, underscoring that the program supports both vulnerable families and Filipino rice farmers.
The government has allocated P178 million in rice assistance for 261,000 families across Bukidnon, including P5 million for 8,000 beneficiaries in Quezon.
Recto said the program will not end after this year, citing the proposed P58.53-billion allocation for the Local Government Support Fund (LGSF) in the 2027 national budget.