MANILA (Commodity Online) : Philippines on Wednesday said it is in constant contact with Thailand on the issue of cutting rice tariff rates under a Southeast Asia-wide trade deal.

The statement issued here by Philippines Agriculture department came a day after Thailand threatened to delay an ASEAN free trade deal unless the Philippines makes tariff cuts on rice that is acceptable to the former, which is one of the world’s biggest rice exporters.



The 10 ASEAN members are expected to ratify this week the ASEAN Trade in Goods Agreement (ATIGA).

Focal to ATIGA is a schedule of reduction and complete removal of tariffs. Under ATIGA, the Philippines is supposed to cut rice tariffs to 20% by January 1 next year from the current 40%.

Manila has asked that rice be kept on the list of goods classified as "highly sensitive" which are allowed a 35% tariff rate.

Thailand wants to be able to export up to 360,000 MT duty free.

The Philippines, which imports a tenth of its rice needs each year, has so far imported 1.775 million MT this year, down from the record 2.3 million MT last year.

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