WORLD TRADE  
ORGANIZATION   
G/C/W/665/Rev.1 
16 November 2012  
 
(12-6309) 
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 Marrak esh Agreement Establishing the World Trade 
Organization (the "WTO Agreement"), the Philippi nes hereby submits for the consideration of the 
Council on Trade in Goods a request for a waiver w ithin the 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 
 
In 2006, pursuant to Section B of Annex 5 of  the Agreement on Agriculture, the Philippines' 
special treatment for rice wa s extended from 1 July 2005 to 30 June 2012, as provided in the 
Rectification and Modification of Sche dule LXXV – Republic of the Philippines 
G/MA/TAR/RS/99/Rev.1 dated 27 Se ptember 2006 (the "Extension Agreement"), which was certified 
by the WTO under WT/Let/562 on 8 February 2007. 
 
Paragraph 5.1 of the Extension Agreement pr ovides that "[a]ny continuation of special 
treatment for rice shall be contingent on th e outcome of the Doha Development Agenda"  and that in 
the event that "the special treatment ceases to appl y after the entry into force of the outcome of the 
DDA negotiations, the tariff rate shall be modified to reflect such an outcome". 
 
Accordingly, at the time of the Extensi on Agreement, it was envisaged that the DDA 
negotiations would be completed be fore the expiration of the extension of the Philippines' special 
treatment for rice.  Moreover, it was also envisaged that the regime for special treatment for primary 
agricultural products under Section B of Annex 5 of  the Agreement on Agriculture would be replaced 
by a new special mechanism that would be agreed to as part of the outcome of the DDA negotiations. 
 
At present, however, the DDA negotiations have not  been completed and, therefore, there has 
as yet been no decision by Members as to whethe r a new special mechanism will be a part of the 
outcome of the DDA negotiations.  
 
In entering into the Extension Agreement, the Philippines agreed to an extension period of 
only seven years on the understanding that the outc ome of the DDA negotiations would provide an 
alternative special mechanism that  would cushion any negative impacts of liberalization on rice on its 
food and livelihood security.  
 
 G/C/W/665/Rev.1 
Page 2  
 
  Justification 
 
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 Memb ers of 60%.  The Philippines has virtually no 
trade-distorting domestic support or export subsidies.   The Philippine's agriculture sector therefore 
can be considered as one of the most open agricultural trading regimes in the WTO. 
 
The Philippines notes that food security is a non-trade concern according to paragraph 6 of the 
preamble of the Agreement on Agriculture and the special treatment provision under  paragraph 1(d) 
of Annex 5 of the Agreement seeks to address this  concern through a temporary exemption from the 
agricultural reform process.    
Food security and poverty in the Philippines ar e directly linked with livelihood security.    
Rice is a predominant staple in the Philippines, which has about 2.4 million rice farmers.  These 
farmers account for 34% of the Philippines' labor 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.   
  
While the Philippines is committed to impr oving market access for rice imports, the 
displacement effects of the expected surge in rice imports following the expiration of special 
treatment is expected to have large negative ef fects on income and livelihood security for farming 
household groups where the problem of poverty is already severe.  This could also result in diverting resources from rice production, thereby compromising the food security of the country.  The Philippines is also concerned that  a sudden surge in rice imports following the expiration of special 
treatment could lead to greater social probl ems including political and economic instability.  
 
Nevertheless, since 2001, the Philippines has enc ouraged greater participation 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 im port rice) in ensuring food security, and also to 
stimulate gradual and healthy competition in the domestic rice production as it becomes more market-
oriented.  
 
In these exceptional circumstances, the Philippi nes requests this waiver  from the obligations 
contained in Article 4.2 and para graphs 8 and 10 of Section B of Annex 5 of the Agreement on 
Agriculture to permit the Philippines to increase its market access for rice as specified in paragraph 3 
and Annex A of the Draft Waiver Decision attached  hereto during the period 01 July 2012-30 June 
2017.  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 Ag reement on Agriculture a nd the Guidelines for the 
Calculation of Tariff Equivalents attached to Annex 5.  
2. Scope of the request and draft decision 
 
The requested waiver is limited in scope to con tinuing 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.   
  G/C/W/665/Rev.1 
 Page 3 
 
 
  3. Conclusion 
 
In the light of the exceptional circumstances explained above, the Philippines requests a 
waiver on the basis of Article IX:3 of the WTO Agreement from its obligations under Articles 4.2, 
paragraphs 8 and 10 of Section B of Annex 5 of the Agreement on Agriculture, and the Extension 
Agreement, by which its special treatment for rice terminates on 30 June 2012 in order to provide 
market access for rice in accordance with Annex A of the Draft Waiver Decision attached hereto 
during the period 01 July 2012-30 June 2017.  
The Philippines requests that the Council for Trade in Goods give this application for a waiver 
expeditious and favorable  consideration.   
  
_______________ 
 G/C/W/665/Rev.1 
Page 4  
 
  DRAFT DECISION ON WAIVER RELATING TO SPECIAL TREATMENT  
FOR RICE OF THE PHILIPPINES 
 
Draft Waiver Decision of [….] 2012
1 
 
 
The General Council , 
 
Conducting the function of the Ministerial Conference in the interval between meetings 
pursuant to paragraph 2 of Article IV in accordance  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 Article IX of the WTO Agreement, the Guiding 
Principles to be followed in considering appli cations for Waivers adopted on 1 November 19562, and 
the Understanding in Respect of Waivers of Oblig ations 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 01 July 2005 to 30 June 2012, as provided in the Rectification and Modification of Sc hedule LXXV – Republic of the Philippines 
G/MA/TAR/RS/99/Rev.1 dated 27 Se ptember 2006 (the "Extension Agreement"), which was certified 
by the WTO under WT/Let/562 on 08 February 2007;  
 
Recalling that paragraph 5.1 of the Extension Agreem ent provides that "[a]ny continuation of 
special treatment for rice shall be contingent on the outcome of the Doha Development Agenda"  and 
that in the event that "the special  treatment ceases to apply after the entry into force of the outcome of 
the DDA negotiations, the tariff rate shall be modified to reflect such an outcome"; 
 Noting , however, that the DDA negotiations have not been completed while the special 
treatment for rice was scheduled to expire on 30 June 2012;   
Noting  that the Philippines initiated negotiati ons on these issues in the Committee on 
Agriculture on 17 November 2011 to continue the special treatment for rice and that these 
negotiations were notified to Members in the document G/AG/W/91 issued on 22 November 2011;  
 
Recognizing that food security is a non-trade co ncern according to paragraph 6 of the 
preamble of the Agreement on Agriculture, and th e special treatment provision under  paragraph 1(d) 
of Annex 5 of the Agreement on Agriculture seek s to address this concern through a temporary 
exemption from Article 4.2 of the Agreement on Agriculture.  
Recognizing  that rice is the predominant staple in  the Philippines and 2.4 million farmers are 
directly dependent on income from rice, and that  increased volatility and unreliability of the global 
rice production and supply has placed food and livelihood security in the Philippines at even greater 
risks;  
 
Noting  that the Philippines has since 2001 encouraged private sector importation of rice to 
complement the National Food Authority’s role and th at this policy will continue so as to ensure food 
security and  stimulate gradual and healthy compe tition in the domestic rice production and market;  
                                                      
1 Adopted in accordance with the Decision-Making Procedures under Articles IX and XII of the WTO 
Agreement agreed by the General Counc il on 15 November 1995 (WT/L/93). 
2 BISD 5S/25.   G/C/W/665/Rev.1 
 Page 5 
 
 
  Noting that the Philippines will, no later than 30 June 2017, subject rice to ordinary customs 
duties on the basis of a tariff equivalent calculated in accordance with paragraph 10 of Annex 5 to the 
Agreement on Agriculture and the Gu idelines for 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 as specifically 
provided for under this temporary waiver until 30 June  2017 at the latest in full compliance with the 
WTO covered agreements;  
   
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 from 01 July 2012 
to 30 June 2017. 
 
2. During the period  starting in the month in whic h 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 Annex A to this decision.  The in- quota tariff on rice within the MMA shall be reduced 
from 40% to XX % as of 01 July 2012, and shall be further reduced to XX % by 30 June 2017 in accordance with the terms in Annex A.  The Philippines shall also establish country-specific quotas as 
specified in Annex A to this decision.  
 3.  The Philippines shall notify, within 30 days af ter the adoption of this decision by the General 
Council, the minimum market acce ss for rice specified in Annex A to this decision as a draft 
document containing modifications of Sche dule LXXV – Republic of the Philippines 
(G/MA/TAR/….), which shall be made effective in accordance with the pr ocedures set out in the 
Decision of 26 March 1980 on Procedures for Modifi cation and Rectification of Schedules and Tariff 
Concessions (L/4962) (BISD 27S/25).   4. There shall be an annual review of this wa iver by the General Council to determine whether 
the exceptional circumstances justif ying this waiver still exist and whether the terms and conditions 
herein have been met.  On th e basis of this annual review, following a recommendation by the 
Committee on Agriculture, 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 pa ragraph 2 and Annex A here in, this waiver shall 
terminate and the importation of rice shall be subj ect 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 la ter than 30 June 2017, the importation of rice shall 
be subject to ordinary customs duties in accordance w ith paragraph 10 of Anne x 5, Section B, of the 
Agreement on Agriculture.   
 
7. The concessions referred under paragraph 2 and Annex A here in and all other concessions 
entered into by the Philippines under this waiv er shall cease to exist upon the termination or 
expiration of this waiver.    
This decision does not affect Members' rights as se t out in the Understanding in Respect of Waivers 
of Obligations under the General Ag reement on Tariffs and Trade 1994.  
 
                                                      
3 G/MA/TAR/RS/99/Rev.1. G/C/W/665/Rev.1 
Page 6  
 
  Annex A to the Draft Waiver Decision of […] 2012  Relating to 
Special Treatment for Rice of the Philippines: 
 
Minimum Market Access for Rice in the Philippines 01 July 2012-30 June 2017 
Rice Quotas and In-Quota Duties Expandi ng on the Market Access Provided in 
G/MA/TAR/RS/99/Rev.1 of 27 September 2006 and WT/Let/562 of 08 February 2007 
 
Part I. Rice Quotas and In-Quota Duties 
 
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 
  
10.06
1 
* ST –
Annex 5 
 
 
  
59, 730 MT 
50% 
 
119,460 MT 
50% 
 
350,000 MT 
40% 
 
XXXXXX MT 
XX% 
 
XXXXXX MT 
XX% 
 
XXXXXX MT 
XX% 
 
XXXXXX MT 
XX% 
 
XXXXXX MT 
XX%   
119,460 MT 
50% 
 
238,940 MT 
50% 
 
350,000 MT 
40% 
 
XXXXXX MT 
XX% 
 
XXXXXX MT 
XX% 
 
XXXXXX MT 
XX% 
 
XXXXXX MT 
XX% 
 
XXXXXX MT 
XX%  
1995 / 1999 
 
 
2000 / June 
2005 
 
July 2005/ 
30 June 2012 
 
01July 2012/ 
30 June 2013 
 
01 July 2013 – 
30 June 2014 
 
01 July 2014 – 
30 June 2015 
 
01 July 2015 – 
30 June 2016 
 
01 July 2016 – 
30 June 2017   
  
NFA * 
 
 
NFA* 
 
 
 
NFA* 
 
 
NFA* 
 
 
NFA* 
 
 
NFA* 
 
 
NFA* 
  
NFA* 
* - National Food Authority (NFA) has the first right to im port minimum market access (MMA) volumes in accordance 
with the food security policies of the Philippines, taking  into account increased private sector participation.  
 
 
Part  II. Country Specific Quotas (CSQs) 
 
WTO Member Annual CSQs, from 01 July 2012 to 30 June 2017 
XXX XX milled basis 
 
 01 July 2012 – 
30 June 2013 01 July 2013 – 30 
June 2014 01 July 2014 – 30 
June 2015 01 July 2015 – 30 
June 2016 01 July 2016 – 30 
June 2017 
A      
B      
C, etc.      
                                                      
1 Based on the tariff lines stipulated in Schedule LXXV – Philippines, covering tariff item numbers 
(HS Code) 1006.10 00 (rice in 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). 
  G/C/W/665/Rev.1 
 Page 7 
 
 
   
Part III – General Provisions 
 This Schedule, particularly the quotas indicated in Parts I and II for the 12-month periods 
commencing 1 July 2012 for the first of such periods and ending on 30 June 2017 for the last of such 
periods, shall be subject to the provisions of the Wa iver Relating to Special Treatment for Rice of the 
Philippines (________).   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.  
 
   
__________