G/C/W/665/Rev.4  
 
27 March 2014  
 
 
(14-1914)  Page: 1/6  
Council for Trade in Goods  Original: English  
 
 REQUEST FOR WAIVER RELATING TO SPECIAL TREATMENT FOR RICE OF THE 
PHILIPPINES  
 Revision  
Pursuant to Article IX:3 of the Marrakesh Agr eement Establishing the World Trade Organization 
(the "WTO Agreement"), the Philippines hereby submits for the consideration of the Council on Trade in Goods a request for a waiver within th e meaning of Article IX:3 of the WTO Agreement 
from its obligations under Articles 4.2 and Section B of Annex 5 of the Agreement on Agriculture to 
continue the Philippines' special treatment for rice within the meaning of those provisions. 
1  PURPOSE AND CIRCUMSTANCES OF THE REQUEST Background 
1.1 In 2006, pursuant to Section B of Annex 5 of  the Agreement on Agriculture, the Philippines' 
special treatment for rice was extended from 1 July 2005 to 30 June 2012, as provided in the Rectification and Modification of Schedu le LXXV – Republic of the Philippines 
G/MA/TAR/RS/99/Rev.1 dated 27 September 2006 (the "Extension Agreement"), which was 
certified by the WTO under WT/Let/562 on 8 February 2007. 
Justification 1.2 The Philippines has been in the forefront of trade reforms in the WTO to support economic 
development.  Its WTO simple average bound tariff is 35% in agriculture, which is just over half of 
the average bound tariff for all WTO developing Members of 60%.  The Philippines has virtually no trade-distorting domestic support or export subsidie s.  The Philippine's agriculture sector therefore 
can be considered as one of the most open agricultural trading regimes in the WTO. 
1.3 Rice is a predominant staple in the Philippines, which has about 2.4 million rice farmers. 
These farmers account for 34% of the Philippines' labour force; however, agriculture contributed 
less than 15% of the GDP in 2008.  "Palay" (rice in the husk) contributed about 19% of gross 
value added in agriculture, hunting, forestry and fishing in 2011. 
1.4 The Philippines has encouraged greater particip ation by the private sector in the importation 
of rice to complement the role of the National Food Authority (the government agency with the 
sole authority to import rice) in ensuring food security, and also to stimulate gradual and healthy 
competition in the domestic rice production as it becomes more market- oriented.  However, the steps toward tariffication are not yet complete. 
1.5 The Philippines therefore requests this waiver  from the obligations contained in Article 4.2 
and paragraphs 8 and 10 of Section B of Annex 5 of the Agreement on Agriculture to permit the 
Philippines to provide for market access for rice as specified in paragraph 3 and Annex A of the 
Draft Waiver Decision attached hereto until 30 June 2017. 
1.6 As of the expiration of this waiver on 30 June 2017, the Philippines will subject rice to 
ordinary customs duties, established on the basis of a tariff equivalent determined in accordance with paragraph 10 of Section B of Annex 5 to the Agreement on Agriculture and the Guidelines for 
the Calculation of Tariff Equivalents attached to Annex 5. G/C/W/665/Rev.4 
 
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  2  SCOPE OF THE REQUEST AND DRAFT DECISION 
2.1 The requested waiver is limited in scope to continuing the special treatment for rice 
(classified under the Chapter 10.06 of the Harmonized System) as agreed in the Extension Agreement and as further described in the draft decision of the General Council attached hereto. 
3  CONCLUSION 
3.1 In light of the exceptional circumstances expl ained above and the expiry of the Philippines' 
Extension Agreement for Special Treatment for Rice on 30 June 2012, the Philippines requests a 
waiver on the basis of Article IX:3 of the WTO Ag reement from its obligations under Articles 4.2, 
paragraphs 8 and 10 of Section B of Annex 5 of th e Agreement on Agriculture in order to provide 
market access for rice in accordance with Annex A of the Draft Waiver Decision attached hereto  
until 30 June 2017. 
3.2 The Philippines requests that the Council for Trade in Goods give this application for a waiver 
expeditious and favourable consideration. 
 
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 G/C/W/665/Rev.4 
 
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  DRAFT DECISION ON WAIVER RELATING TO  SPECIAL TREATMENT FOR RICE OF THE 
PHILIPPINES 
 
DRAFT WAIVER DECISION OF [….] 20141 
The General Council, 
 Conducting  the function of the Ministerial Confer ence in the interval between meetings 
pursuant to paragraph 2 of Article IV in accordan ce with Article IV: 1 of the Marrakesh Agreement 
Establishing the World Trade Organization (the "WTO Agreement"); 
 Having  regard to paragraphs 1, 3 and 4 of Arti cle IX of the WTO Agreement, the Guiding 
Principles to be followed in considering applications for Waivers adopted on 1 November 19562, 
and the Understanding in Respect of Waivers of Obligations under the General Agreement on 
Tariffs and Trade 1994; 
 Recalling  that pursuant to Section B of Annex 5 of the Agreement on Agriculture (AOA), the 
Philippines extended its special treatment for rice  from 1 July 2005 to 30 June 2012, as provided 
in the Rectification and Modification of Schedule LXXV - Republic of the Philippines 
G/MA/TAR/RS/99/Rev.1 dated 27 September 2006 (the "Extension Agreement"), which was certified by the WTO under WT/Let/562 on 8 February 2007; 
 Noting  that the Philippines has since 2001 encouraged private sector importation of rice to 
complement the National Food Authority's role and that the Philippines has pledged to continue encouraging private sector importations so as to ensure food security and stimulate competition in the domestic rice production and market; 
 Noting  that the Philippines will, no later than 30 June 2017, subject rice to ordinary customs 
duties on the basis of a tariff equivalent calculat ed in accordance with paragraph 10 of Annex 5 to 
the Agreement on Agriculture and the Guidelines fo r the Calculation of Tariff Equivalents attached 
to Annex 5 of the Agreement on Agriculture; 
 Noting  the commitment of the Philippines to apply its import regime for rice in full 
compliance with the WTO covered agreements at all times, except to the extent that 
non-compliance is specifically authorized under this temporary waiver which will last until 
30 June 2017. 
Decides , in view of these exceptional circumstances, as follows: 
1. Subject to the terms and conditions set out hereunder, the WTO obligations of the 
Philippines under Article 4.2 and paragraphs 8 and 10 of Annex 5, Section B, of the Agreement on 
Agriculture, and the Philippines' commitment under the Extension Agreement
3, shall be waived 
until 30 June 2017. 
2. During the period starting in the month in which this waiver is approved and ending no later 
than 30 June 2017, the Philippines shall provide the minimum market access ("MMA") for rice specified in Part I of Annex A to this decision. Within the MMA, the Philippines shall also establish 
country-specific quotas as specified in Part II of Annex A to this decision.  The maximum in-quota 
tariff on rice within the MMA shall be as  specified in Part I of Annex A.   
3. The Philippines shall notify, within 30 days afte r the adoption of this decision by the General 
Council, the minimum market access for rice specified in Annex A to this decision as a draft 
document containing modifications of Schedule LXXV – Republic of the Philippines (G/MA/TAR/…), 
                                               
1 Adopted in accordance with the Decision-Making Procedures under Articles IX and XII of the WTO 
Agreement agreed by the General Council on 15 November 1995 (WT/L/93). 
2 BISD 5S/25. 
3 G/MA/TAR/RS/99/Rev.1. G/C/W/665/Rev.4 
 
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  which shall be made effective in accordance with the procedures set out in the Decision of 
26 March 1980 on Procedures for Modification  and Rectification of Schedules and Tariff 
Concessions (L/4962) (BISD 27S/25). The waiver sh all terminate in the event that the Philippines 
fails to notify the minimum market access for rice specified in Annex A within 30 days in 
accordance with the terms of this paragraph. 
4. There shall be an annual review of this waiv er by the General Council to determine whether 
the exceptional circumstances justifying this waiver still exist and whether the terms and 
conditions herein have been met. On the basis of this annual review, the General Council may 
modify or terminate this waiver. 
5. In the event that, at any time during the term  of the waiver, the Philippines fails to afford a 
Member the benefits of concessions referred under  paragraph 2 and Annex A herein or any other 
concessions entered into by the Philippines under this waiver, this waiver shall terminate and the 
importation of rice shall be subject to ordinary customs duties in accordance with the provisions of paragraph 10 of Annex 5, Section B, of the Agreement on Agriculture. 
6. At the expiration of this waiver, and no later than 30 June 2017, the importation of rice shall 
be subject to ordinary customs duties in accordance with paragraph 10 of Annex 5, Section B, of the Agreement on Agriculture. 
7. The concessions referred under paragraph 2 and Annex A herein and all other concessions 
entered into by the Philippines under this waiver  shall cease to exist upon the termination or 
expiration of this waiver. 
8. This decision does not affect Members' rights as set out in the Understanding in Respect of 
Waivers of Obligations under the General Agreement on Tariffs and Trade 1994. 
 
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  G/C/W/665/Rev.4  
 
- 5 - ANNEX A TO THE DRAFT WAIVER DECISION OF […] 2014 RELATING 
TO SPECIAL TREATMENT FOR RI CE OF THE PHILIPPINES: 
 
MINIMUM MARKET ACCESS FOR RICE IN THE PHILIPPINES 1 JULY 2012-30 JUNE 2017 
RICE QUOTAS AND IN-QUOTA DUTIES EXPANDING ON THE MARKET ACCESS PROVIDED IN 
G/MA/TAR/RS/99/REV.1 OF 27 SEPTEMBER 2006 AND WT/LET/562 OF 8 FEBRUARY 2007 
Part I:  Rice Quotas1 and In-Quota Duties2 
Description 
of 
Products Tariff 
item 
Number Initial quota 
quantity and In-
quota tariff rate Final Quota 
Quantity and In-
quota tariff rate Implementation 
period 
from/to Initial 
negotiating right Other Terms and 
Conditions 
(1) (2) (3) (4) (5) (6) (7) 
 
Rice  
10.061 
* ST – Annex 5  
59, 730 MT 
50% 
 
119,460 MT 
50% 
 
350,000 MT 
40% 
 
350,000 MT 
40% 
 
645,134 MT 
40% 
 
805,200 MT 
40% 
 
805,200 MT  
35%  
119,460 MT 
50% 
 
238,940 MT 
50% 
 
350,000 MT 
40% 
 
350,000 MT 
40% 
 
645,134 MT 
40% 
 
805,200 MT 
35% 
 
805,200 MT 
35%  
1995/1999 
 
 
2000/June 2005 
 
 
July 2005/ 
30 June 2012 
 
1 July 2012/ 
30 June 2013 
 
1 July 2013 – 
30 June 2014 
 
1 July 2014 – 
30 June 2015 
 
1 July 2015 – 
30 June 2017   
NFA* 
 
 
NFA* 
 
 
NFA*  
 
 
NFA*  
 
 
NFA* 
 
 
NFA* 
 
 
NFA* 
 
* - National Food Authority (NFA) has the first right to import minimum market access (MMA) volumes in accordance with the food  security policies of the 
Philippines, taking into account increased private sector participation. 
                                               
1 Based on the tariff lines stipulated in Schedule LXXV – Philippines, covering tariff item numbers (HS Code) 1006.10 00 (rice i n the husk, paddy and rough), 
1006.20 00 (husked (brown) rice)), 1006.30 00 (Semi-milled or wholly milled rice, whether or not polished or glazed), and 1006. 40 00 (Broken rice). 
2  If the rate scheduled under the ASEAN Trade in Goods Agreemen t (ATIGA) for the Philippines is lower than the rate specified i n this Annex, the ATIGA rate shall 
constitute the in-quota rate for imports from any WTO Member. G/C/W/665/Rev.4 
 
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  Part II:  Country Specific Quotas (CSQs) 
WTO Member Annual CSQs until 30 June 2017 
(in metric tons and on a milled basis) 
 1 July 2013 –  
30 June 2014 01 July 2014 – 
30 June 2015 01 July 2015 –  
30 June 2016 01 July 2016 –  
30 June 2017 
Australia 15,000 15,000 15,000 15,000 
China 40,000 50,000 50,000 50,000 
El Salvador 4,000 4,000 4,000 4,000 
India 40,000 50,000 50,000 50,000 
Pakistan 40,000 50,000 50,000 50,000 
Thailand 228,067 293,100 293,100 293,100 
Vietnam 228,067 293,100 293,100 293,100 
 
PART III  
 GENERAL PROVISIONS  
If the Waiver is approved in a month other than the month of July of any such period, the 
quota for that period shall be proportionately reduced.  
 
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