G/STR/N/8/PHL/Rev.1, G/STR/N/9/PHL/Rev.1  
G/STR/N/10/PHL/Rev.1, G/STR/N/11/PHL/Rev.1  
G/STR/N/12/PHL/Rev.1, G/STR/N/13/PHL/Rev.1  
G/STR/N/14/PHL/Rev.1, G/STR/N/15/PHL/Rev.1  
G/STR/N/16/PHL/Rev.1  
 
 
5 October 2018  
(18-6170) Page: 1/9 
Working Party on State Trading Enterprises  Original: English  
 
 STATE TRADING  
UPDATING AND NEW AND  FULL NOTIFICATION P URSUANT TO ARTICLE X VII:4(A) OF THE  
GATT 1994 AND PARAGR APH 1 OF THE UNDERST ANDING ON  
THE INTERPRETATION O F ARTICLE XVII  
PHILIPPINES  
Revision1 
The f ollowing communication, dated 2  October 2018, is being circulated at the request of the 
Delegation of Philippines.  
 
_______________  
 
 
I. ENUMERATI ON OF STATE -TRADING ENTERPRISES  
 
A. Identificati on of state trading enterprises  
 
National Food Authority (NFA)  
 
B. Description of products: The NFA is engaged in the trade of the following 
commodities:  
 
1. Rice (H.S. No. 1006.10 and 1006.30)  
2. Corn (H.S. No. 1005.90)  
3. Other commodities as authorized by the President of the Philippines  
 
II. REASON AND PURPOSE F OR INTRODUCING AND M AINTA INING STATE -TRADING 
ENTERPRISES  
 
A. Reason/ Purpose  
 
As the trading arm of the government, NFA is tasked to ensure the following:  
 
1. Food security – The NFA ensures food security in staple cereals in times and places of 
emergency, both natural or man -made. Specifically NFA responds within 48 hours to 
the requirements of calamity/emergency stricken areas. Also, it should restore or 
mainta in within two weeks the commodities ' supply and prices at levels immediately 
prior to the calamity/emergency.  
 
2. Stabilization – The NFA ensures farmgate price levels that enable farmers to derive 
reasonable returns on their production investment on the one hand, and ensuring 
reasonable retail prices for consumers on the other.  
                                                
1 In English only.  G/STR/N/8/PHL /Rev.1 • G/STR/N/9/PHL /Rev.1 • G/STR/N/10/PHL /Rev.1 • G/STR/N/11 /PHL/Rev.1 
• G/STR/N/1 2/PHL/Rev.1 • G/STR/N/1 3/PHL/Rev.1 • G/STR/N/1 4/PHL/Rev.1 • 
G/STR/N/15 /PHL/Rev.1• G/STR/N/16 /PHL/Rev.1 
 
- 2 - 
 
   
B. Legal Author ity: 
 
1. National Grains Authority (NGA) Act of 1972 (Presidential Decree No. 4), as amended, 
which created the NFA (then NGA) to promote the integrated growth and development 
of the grains industry and accorded the exclusive authority on the importation and 
export ation of rice, corn and other grains  
 
2. Agricultural Tariffication  Act of 1996 (Republic Act No. 8178), which lifted the 
quantitative import restriction on corn, liberalized corn importation and reiterated NFA's 
exclusive authority to import rice while restoring its prerogative to allocate import 
quotas of rice to local importers in cases of production shortfalls.  
 
III. DESCRIPTION OF THE F UNCTIONING O F THE STATE -TRADING ENTERPRISES  
 
A. Summary statement providing overview of operations of the state trading enterprise.  
 
The NFA's mandates are currently anchored on a dire ct market intervention strategy that revolves 
around the maintenance of a year -round 15 -day rice buffer stock which is to increase to a 30 -day 
stock level during the lean season of each year. Under this strategy, NFA is allowed to engage in 
domestic grain procurement from individual and organized small farmers at government support 
prices. The strategy banks on the price -pull effect of its marketing operation and is oriented on a 
support or release price structure that is sustained by subsidy infusion from the government to 
finance the cost of stabilization. Alternatively, the NFA may undertake rice importation.  
 
B. Specification of exclusive or special rights or privileges enjoyed b y the state trading 
enterprise.  
 
The NFA has the exclusive authority to imp ort rice. It also has the authority to issue import quotas 
and import permits for rice, corn and other cereals.  
 
C. Types of entities other than the state trading enterprise that are allowed to engage in 
importation/exportation and conditions for particip ation.  
 
The private sector, registered and licensed with NFA, is given limited participation in the importation 
of rice (i.e. limited volume and importation of premium, fancy and glutinous varieties only). Those 
who have availed of this privilege were ric e millers and traders.  
 
D. How import /export levels are established b y the state trading enterprise.  
 
Determination of import quantity is the function of an Inter -Agency Committee on Rice and Corn led 
by Department of Agriculture (DA), with the NFA as a member. The Committee regularly conducts 
an evaluation of the country's Rice Supply/Demand Situation and Outlook on a crop year basis. 
During the evaluation process, the Committee determines the volume/deficit the country will have 
by the end of the crop y ear, for approval by the President of the Philippines.  
 
It is also governed by commitments to Annex 5 of the Agricultural Agreement.  
 
Import price is determined through negotiations between the NFA and the source of importation, 
taking into consideration , prevailing world market prices.  
 
E. How export prices are determined  
 
Rice exportation is carried out only in times of surplus or excess supply. The last time that the 
Philippines exported rice was in 1987 when it shipped out 111,000 MT as partial payment of the 
country's rice loan with Indonesia. Since then, government, through the NFA has not engaged in 
exports. In case of private exports, prices are generally based on the world market prices.  
 G/STR/N/8/PHL /Rev.1 • G/STR/N/9/PHL /Rev.1 • G/STR/N/10/PHL /Rev.1 • G/STR/N/11 /PHL/Rev.1 
• G/STR/N/1 2/PHL/Rev.1 • G/STR/N/1 3/PHL/Rev.1 • G/STR/N/1 4/PHL/Rev.1 • 
G/STR/N/15 /PHL/Rev.1 • G/STR/N/16 /PHL/Rev.1 
 
- 3 - 
 
  F. How the resale prices of imported products are determined  
 
NFA considers the following parameters in determining the selling p rice of the rice it imports – 
procurement, unloading, dispersal, handling, and distribution costs, tariff rate and equalization fee.  
 
G. Whether the state trading enterprise is used to fulfill contractual obligations entered 
into by the government  
 
Negoti ations entered into by NFA depend on who is availi ng of the imported rice stocks.  
 
H. Brief description of market structure  
 
The private sector is the major player in the grains industry. The NFA intervenes only through set 
standards, rules and policies. It likewise monitors adherence to the regulations implemented.  
 
During the lean months of July, August and September, the NFA sells directly to end consumers or 
through it's various accredited retailers/ outlets at government -set release prices. At the ons et of 
the main crop harvest months, NFA buys palay at a given support price purposely to give farmers 
reasonable returns and to pull farm prices up.  
 
IV. STATISTICAL INFO RMATION (PLEASE REFER TO ATT ACHED TABLES I AND I II.)  
 
V. REASON WHY N O FOREIGN TRADE  HAS TAKEN PLACE  
 
The National Food Authority did not engage in the export of rice and corn in the years 1998 -2001 
because of shortage of domestic supply of both products . 
 
_______________  
  
  G/STR/N/8/PHL /Rev.1 • G/STR/N/9/PHL /Rev.1 • G/STR/N/10/PHL /Rev.1 • G/STR/N/11/PHL /Rev.1 
• G/STR/N/12/PHL /Rev.1 • G/STR/N/13/PHL /Rev.1 • G/STR/N/14/PHL /Rev.1 • 
G/STR/N/15/PHL /Rev.1 • G/STR/N/16/PHL /Rev.1 
- 4 - TABLE I  
STATE TRADING: NATIO NAL FOOD AUTHORITY  
STATISTICAL INFORMAT ION, IMPORTS  
(In Metric Tons)  
Product/ Year Description of product(s)  
including HS Number(s)  Total 
quantity  
imported  Quantity imported by 
state trading enterprise  Average 
import price 
(P/kg) Average representative 
domestic sales price 
(P/kg)  National production 
(Calendar Year)  
1 2 3 4 5 6 7 
Rice* 1006.10 Rice paddy/ 1006.30 
Semi -milled or wholly milled 
rice, whether or not polished or 
glazed       
2002 1,190,205.00  1,181,584.00  9.83 21.96  13,270,653.00  
2003 875,754.00  646,864.00  10.34  22.20  13,499,884.00  
2004 886,801.00  866,157.00  13.47  22.70  14,496,784.00  
2005 1,783,342.00  1,771,841.00  15.45  24.38  14,603,005.00  
2006 1,648,598.00  1,627,700.00  15.51  25.06  15,326,706.00  
2007 1,821,060.00  1,790,269.00  14.84  26.20  16,240,194.00  
2008 2,390,748.00  2,297,271.00  32.70  34.24  16,815,548.00  
2009 1,842,806.00  1,642,550.00  28.10  36.32  16,266,417.00  
2010 2,369,403.00  2,149,096.34  29.12  36.48  15,772,319.00  
2011 940,733.00  251,300.00  22.46  36.95  16,684,062.00  
2012 815,472.00  119,776.55  19.69  37.33  18,032,525.00  
2013 345,662.00  298,036.12  19.89  38.84  18,439,419.00  
2014 1,700,490.00  1,567,047.60  20.05  43.98  18,967,826.00  
2015 1,916,336.00  1,274,801.25  19.71  43.93  18,149,838.00  
2016 681,249.00  597,553.15  20.36  43.80  17,627,245.00  
* Column 3 is in rice term while column 7 is in palay term.  
* Column 6 represents the average prevailing domestic retail price of Commercial rice sold in the local market.  
 
 
 
 
 
  
  G/STR/N/8/PHL/R ev.1 • G/STR/N/9/PHL/R ev.1 • G/STR/N/10/PHL/R ev.1 • G/STR/N/11/PHL/R ev.1 
• G/STR/N/12 /PHL/Rev.1 • G/STR/N/13/PHL /Rev.1 • G/STR/N/14/PHL /Rev.1 • 
G/STR/N/15/PHL /Rev.1 • G/STR/N/16/PHL /Rev.1 
- 5 -  TABLE II   
STATE TRADING: NATIO NAL FOOD AUTHORITY  
STATISTICAL INFORMAT ION, EXPORTS  
(In Metric Tons)  
Product/Y ear Description of product(s)  
including HS Number(s)  Total 
quantity 
exported  Quantity exported  by 
state trading 
enterprise  Average 
export  price 
(P/kg) Average representative 
domestic sales price 
(P/kg)  National 
production 
(Calendar Year)  
1 2 3 4 5 6 7 
Rice 1006.10 Rice paddy/  
1006.30 Semi -milled or wholly 
milled rice, whether or not  
polished or glazed  
None None None None None 2002 
2003 
2004 
2005 
2006 
2007 
2008 
2009 
2010 
2011 
2012 
2013 
2014 
2015 
2016 
 
 
 
 
 
 
 
 
 
  
  G/STR/N/8/PHL /Rev.1 • G/STR/N/9/PHL /Rev.1 • G/STR/N/10/PHL /Rev.1 • G/STR/N/11/PHL /Rev.1 
• G/STR/N/12/PHL /Rev.1 • G/STR/N/13/PHL /Rev.1 • G/STR/N/14/PHL /Rev.1 • 
G/STR/N/15/PHL /Rev.1 • G/STR/N/16/PHL /Rev.1 
- 6 - TABLE III  
STATE TRADING:  NATIONAL F OOD AUTHORITY  
STATISTICAL INFORMAT ION, DOMESTIC ACTIVI TIES 
(In Metric Tons)  
 
Product/Y ear Description of product(s)  
including HS Number(s)  Domestic 
purchases by  state 
trading enterprise  National  production  Domestic sales by 
state tradin g 
enterprise  National  consumption  
1 2 3 4 5 6 
Rice*  1006.10 Rice paddy/  
1006.30 Semi -milled or wholly 
milled rice, whether or not 
polished or glazed      
2002 299.00  13,270.00  1,235.00  8,440.00  
2003 296,383.00  13,500,000.00  1,142,242.00  9,747,000.00  
2004 207,625.00  14,497,000.00  1,342,152.00  10,735,000.00  
2005 76,394.00  14,603,000.00  1,665,831.00  11,271,000.00  
2006 74,072.00  15,327,000.00  1,614,984.00  11,519,000.00  
2007 32,575.00  16,240,000.00  1,883,082.00  12,442,000.00  
2008 683,042.00  16,815,000.00  2,027,419.00  12,897,000.00  
2009 470,798.00  16,226,000.00  1,870,155.00  13,100,000.00  
2010 502,057.00  15,772,000.00  1,759,234.00  11,835,000.00  
2011 274,981.00  16,684,062.00  1,113,394.00  12,411,000.00  
2012 360,882.00  18,032,422.00  766,231.00  12,941,000.00  
2013 365,582.00  18,439,406.00  758,657.00  12,854,000.00  
2014 26,481.00  18,967,826.00  1,316,599.00  12,942,000.00  
2015 228,890.00  18,149,838.00  941,774.00  12,957,000.00  
2016 118,257.00  17,627,244.00  1,144,220.00  12,567,000.00  
* Columns 5 and 6 are in rice terms while columns 3 and 4 are in palay terms.  
 
 
 
 
 
  
  G/STR/N/8/PHL/R ev.1 • G/STR/N/9/PHL/R ev.1 • G/STR/N/10/PHL/R ev.1 • G/STR/N/11/PHL/R ev.1 
• G/STR/N/12 /PHL/Rev.1 • G/STR/N/13/PHL /Rev.1 • G/STR/N/14/PHL /Rev.1 • 
G/STR/N/15/PHL /Rev.1 • G/STR/N/16/PHL /Rev.1 
- 7 - TABLE I  
 
STATE TRADING: NATIO NAL FOOD AUTHORITY  
STATISTICAL INFORMAT ION, IMPORTS  
(In Metric Tons)  
Product/  
Year Description of product (s) 
including HS number (s)  Total quantity 
imported  Quantity imported by state 
trading enterprise  Average import 
price (P/kg)  Average representative 
domestic sales price 
(P/kg)  National 
production  
(Calendar Year)  
1 2 3 4 5 6 7 
Corn  10.005.90 Maize (corn), 
other than seed            
2002 NONE  NONE  NONE  YGN 13.45  
WGN 13.58  4,319,262.00  
2003 NONE  NONE  NONE  YGN 12.98  
WGN 13.00  4,615,625.00  
2004 NONE  NONE  NONE  YGN 14.40  
WGN 15.14  5,413,386.00  
2005 NONE  NONE  NONE  YGN 14.30  
WGN 15.25  5,253,160.00  
2006 NONE  NONE  NONE  YGN 14.65  
WGN 15.72  6,082,109.00  
2007 NONE  NONE  NONE  YGN 15.79  
WGN 15.31  6,736,940.00  
2008 NONE  NONE  NONE  YGN 18.18  
WGN 17.19  6,928,225.00  
2009 NONE  NONE  NONE  YGN 19.19  
WGN 21.21  7,034,033.00  
2010 96,130  NONE  NONE  YGN 19.26  
WGN 19.55  6,376,796.00  
2011 NONE  NONE  NONE  WGN 19.80  
YGN 19.07  6,971,221.00  
2012 NONE  NONE  NONE  WGN 21.51  
YGN 19.72  7,407,068.00  
2013 NONE  NONE  NONE  WGN 22.04  
YGN 18.97  7,377,293.00  
2014 NONE  NONE  NONE  WGN 21.08  
YGN 22.25  7,770,603.00  
2015 NONE  NONE  NONE  WGN 21.86  
YGN 22.51  7,518,756.00  
2016 NONE  NONE  NONE  WGN 23.87  
YGN 22.57  7,218,817.00  
* Column 6 represents the average prevailing domestic retail price of Commercial corn sold in the local market.   
  G/STR/N/8/PHL /Rev.1 • G/STR/N/9/PHL /Rev.1 • G/STR/N/10/PHL /Rev.1 • G/STR/N/11/PHL /Rev.1 
• G/STR/N/12/PHL /Rev.1 • G/STR/N/13/PHL /Rev.1 • G/STR/N/14/PHL /Rev.1 • 
G/STR/N/15/PHL /Rev.1 • G/STR/N/16/PHL /Rev.1 
- 8 - TABLE II  
 
STATE TRADING: NATIO NAL FOOD AUTHORITY  
STATISTICAL INFORMAT ION, EXPORTS  
(In Metric Tons)  
 
Product/ 
Year  Description of product (s)  
including HS number (s)  Total quantity 
exported  Quantity exported  by state 
trading enterprise  Average export  price 
(P/kg)  Average representative 
domestic sales price (P/kg)  National 
production  
(Calenda r Year)  
1 2 3 4 5 6 7 
Corn  10.005.90 Maize (corn), other than 
seed      
None      
2002      
2003      
2004      
2005      
2006      
2007      
2008  None  None  None  None  
2009      
2010      
2011      
2012      
2013      
2014      
2015      
2016       
  G/STR/N/8/PHL/R ev.1 • G/STR/N/9/PHL/R ev.1 • G/STR/N/10/PHL/R ev.1 • G/STR/N/11/PHL/R ev.1 
• G/STR/N/12 /PHL/Rev.1 • G/STR/N/13/PHL /Rev.1 • G/STR/N/14/PHL /Rev.1 • 
G/STR/N/15/PHL /Rev.1 • G/STR/N/16/PHL /Rev.1 
- 9 - TABLE III  
 
STATE TRADING: NATIO NAL FOOD AUTHORITY  
STATISTICAL INFORMAT ION, DOMESTIC ACTIVITIES  
(In Metric Tons)  
Product/Year  Description of product (s)  
including HS number (s)  Domestic purchases by state 
trading enterprise  National production  Domestic sales by state 
trading enterprise  National 
consumption  
1 2 3 4 5 6 
Corn  10.005.90 Maize (corn), 
other than seed          
2002 NONE  4,319.00  0.02 965 
2003 NONE  4,615,000.00  468.00  5,935,000  
2004 189.00  5,413,000.00  NONE  6,022,000  
2005 3,276.00  5,254,000.00  1,982.00  6,183,000  
2006 27.00  6,082,000.00  754.00  7,050,000  
2007 5.00 6,737,000.00  123.00  7,539,000  
2008 1,323.00  6,927,000.00  721.00  7,617,000  
2009 73,697.00  7,034,033.00  1,194.00  7,741,000  
2010 25,565.00  6,376,796.00  65,149.00  7,311,000  
2011 183.00  6,971,221.00  2,277.00  5,821,750  
2012 623.00  7,406,830.00  1,024.00  6,405,750  
2013 12,505.00  7,377,076.00  1,090.00  6,993,400  
2014 5,865.00  7,770,604.00  2,832.00  8,004,450  
2015 1,514.00  7,518,756.00  10.00  8,415,000  
2016 1,488.00  7,218,816.00  388.00  8,030,000  
 
 
__________