Manila and Islamabad are assured that they may seal a deal by June 2025 if not earlier, via which Pakistan will ship to the Philippines not less than 1 million metric tons (MT) of milled rice to enhance the archipelago’s provide.
In an announcement on Friday, the Division of Agriculture (DA) stated it hopes a memorandum of understanding (MOU) between each events shall be finalized by the primary half of 2025.
READ: PH eyes cope with India, Pakistan on rice imports
Based on Agriculture Secretary Francisco Tiu Laurel Jr., he met just lately with Pakistan’s Ambassador to Manila Imtiaz Kazi, who proposed such a quantity “at a aggressive value.”
A million MT is a few quarter of the Philippines’ rice import wants.
Based on the DA, the Pakistani envoy sought affirmation on the continuation of the diminished tariff on rice imports, which Tiu Laurel stated could possibly be prolonged till 2028 “if deemed crucial.”
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15% tariff
President Marcos signed final June Government Order (EO) No. 62, which diminished import duties on milled rice to fifteen p.c till 2028 from 35 p.c beforehand to handle meals costs whereas tempering the inflationary strain on numerous commodities.
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EO 62 requires a periodic evaluate of rice tariffs each 4 months, as directed by the President. Relying on the evaluation, the 15-percent tariff on rice could also be retained, elevated or decreased. However Tiu Laurel stated just lately the DA is not going to suggest elevating the import duties on imported rice anytime quickly.
The announcement got here after the DA disclosed it’s negotiating with Pakistan and India to safe a “steady provide” of two million MT of rice, in a transfer to create a degree enjoying subject amongst rice-supplying nations.
“We would like them to compete for our market,” Tiu Laurel stated earlier, including the company was engaged on the same association with India.
Final November, the Pakistani envoy stated that his nation, the third-largest provider of imported rice to the archipelago, sought to extend its share within the native rice market via a partnership with the Philippines on rice importation.
Again then, Kazi stated merchants from Pakistan search “stability and certainty” on the amount of rice to be shipped to the Philippines, citing fluctuating tariffs levied by the federal government and aggressive international costs.
“We need to improve that share, offered we will additionally present [a] steady good provide of rice and that will depend on mutual concessions for one another, which signifies that the Philippines ought to assure us that they need this a lot rice yearly,” he added.
Pakistan has been exporting rice to the archipelago since 2019, the yr rice buying and selling within the Philippines was liberalized.
The Philippines’ different sources of rice imports are Vietnam, Thailand, Myanmar, India, China, Japan, Cambodia, Italy and Spain.
Vietnam stays the main exporter of rice to the Philippines with 3.44 million MT, accounting for 76.7 p.c of the 4.48 million MT of rice sourced from overseas as of Dec. 12, knowledge from the Bureau of Plant Business confirmed.
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On the identical time, Thailand and Pakistan equipped 567,913.22 MT and 244,859.48 MT, respectively.