The P5 billion was in advance of the billions in tariffs expected from the easing of quantitative restrictions
on imported rice.
Dominguez has described the rice liberalization law on the shift from quantitative restrictions
to tariffs on rice imports as a 'proud' accomplishment of the Duterte presidency and the DOF, given that it took more than 30 years under various administrations to get the Congress to approve this game-changing reform.
The law replaces quantitative restrictions
on imported rice with tariffs or taxes.
Under the law imposing tariffs on rice imports in lieu of quantitative restrictions
, private traders would now be allowed to import rice so long as they comply with basic requirements set by the Department of Agriculture's Bureau of Plant Industry (BPI) for food safety and protection of our farming areas, Lambino said.
Besides, a series of measures are being proposed that seek to impose quantitative restrictions
, increase rates of regulatory duties and, in some cases, restrict imports of certain commodities to control the rising import bill of the country.
Recognising that certain investment measures can have trade-restrictive and distorting effects, it states that no member shall apply a measure that is prohibited by the provisions of GATT Article III (national treatment) or Article XI (quantitative restrictions
The authorities initially reacted to the oil price shock with significant fiscal tightening and exchange rate adjustments coupled with foreign exchange quantitative restrictions
One measure, she said, is the need to amend the Agricultural Tariffication Act that would remove quantitative restrictions
on rice importation.
The General Agreement on Tariffs and Trade permits members to impose quantitative restrictions
necessary to the development of a particular industry in the early stages of economic development.
Meanwhile, the proposed reforms in the rice industry involving the replacement of quantitative restrictions
with tariffs and the deregulation of rice imports could serve to reduce inflation.
It also empowered the Committee to consider measures such as quantitative restrictions
, prior registration and changes in import duties depending on domestic production and demand, domestic and international prices and international trade volumes.