Filipino-Chinese biz chamber backs rice tariffication

February 13, 2019

The Federation of Filipino-Chinese Chamber of Commerce and Industry (FFCCCII) has joined other business groups in expressing full support for the proposed law seeking to impose tariffs on rice imports in lieu of quantitative restrictions, which it believes is a “much-needed reform” that will ease the negative effects of inflation especially on the poorest of the poor.

In a letter to President Rodrigo Duterte, the FFCCCII said the rice tariffication bill will benefit the most low-income families as this staple food accounts for a hefty part of their daily household expense.

“Rice is the staple food of our nation and it comprises almost 20 percent of the household expense of low-income households. We believe that by removing the import quotas on rice and replacing them with tariffs, the price of rice will significantly be lower as there will be competition, and the lack of available cheap rice will no longer be an issue,” said the FFCCCII in the letter signed by its president, Domingo Yap.

A copy of the letter was also sent to Finance Secretary Carlos Dominguez III, who believes that this import liberalization measure will help the government ease inflation. The finance department released a statement on this Wednesday.

The group also said the rice tariffication bill will ensure  local farmers would also benefit through the creation of a Rice Competitiveness Enhancement Fund (RCEF), which will provide them with assistance programs, loans, grants, and aid needed to modernize rice farming as well as funds for the development of inbred rice seeds and skills enhancement.

“This measure is a much-needed reform that will help our countrymen,” the FFCCCII said ahead of the President’s expected signing into law of the rice tarrification bill.

Earlier, a joint statement was signed by nine business organizations also expressing their support for rice tariffication.

The joint statement was signed by the Management Association of the Philippines (MAP), American Chamber of Commerce of the Philippines (AmCham), Bankers Association of the Philippines (BAP), Financial Executives Institute of the Philippines (FINEX), Foundation for Economic Freedom (FEF), Judicial Reform Initiative (JRI), Makati Business Club (MBC), Philippine Investment Funds Association (PIFA), and the Semiconductor and Electronic Industries in the Philippines Inc. (SEIPI).

“We, the undersigned business and professional organizations, hereby strongly support ongoing efforts and measures of the administration to liberalize the economy and thereby unleash its full potential to ensure sustainable, robust and inclusive economic growth, while ensuring better quality of life for our people through affordable food,” they said in their statement.

They said “consumers must be freed from food supply apprehension and provided with price stability at an affordable level. This measure will address those concerns through free and open competition.”

The bill, which was ratified by both the Senate and the House of Representatives in December last year, was transmitted by the Congress to Malacañang last Jan.15 for the signature and approval of President Duterte. The President, who has certified the bill as urgent last year, can opt to sign the enrolled bill or allow it to lapse into law 30 days after its submission by the Legislature, as provided under the Constitution.

In their joint statement, the business groups said that upon enactment, the rice tariffication law will help “harness the financial resources, management expertise, logistics support, and extensive nationwide distribution system of the private sector to ensure food security, particularly of the most important food staple—rice.”

They also made it clear that rice farmers will be protected from unfair competition through the imposition of a 35 percent import tariff on imported rice.

“We urge the sustained provision of essential support services and facilities--irrigation, better seedlings, modern growing and efficient harvesting technology, safe agricultural chemicals and post-harvest facilities by the government to further assist the farm sector to be more productive and increase rural income,” the joint statement said. DMS