G/C/W/665/Rev.2  
 
8 October 2013  
(13-5467)  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. 
1.2.  Paragraph 5.1 of the Extension Agreement provides that "[a]ny continuation of special 
treatment for rice shall be contingent on the ou tcome 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". 
1.3.  Accordingly, at the time of the Extens ion Agreement, it was envisaged that the DDA 
negotiations would be completed before 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. 
1.4.  At present, however, the DDA negotiations have not been completed and, therefore, there 
has as yet been no decision by Members as to wh ether a new special mechanism will be a part of 
the outcome of the DDA negotiations. 
1.5.  In entering into the Extension Agreement, the Philippines agreed to an extension period of 
only seven years on the understanding that the outcome 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. 
Justification 
1.6.  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 subsid ies. The Philippine's agriculture sector therefore 
can be considered as one of the most open agricultural trading regimes in the WTO. G/C/W/665/Rev.2 
 
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  1.7.  The Philippines notes that food security is  a non-trade concern according to paragraph 6 of 
the preamble of the Agreement on Agricultur e 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. 
1.8.  Food security and poverty in the Philippines ar e directly linked with livelihood security. Rice is 
a predominant staple in the Philippines, which ha s 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. 
1.9.  While the Philippines is committed to im proving market access for rice imports, the 
displacement effects of the expected surge in ri ce imports following the expiration of special 
treatment is expected to have large negative effects 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 problems including political and economic instability. 
1.10.  Nevertheless, since 2001, the Philippines has encouraged 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 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. 
1.11.  In these exceptional circumstances, the Phil ippines 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 increase its market access for rice as specified in 
paragraph 3 and Annex A of the Draft Waiver De cision attached hereto during the period 
1 July 2012-30 June 2017. As of the expiration of th is 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 Tari ff Equivalents attached to Annex 5. 
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 the light of the exceptional circumst ances explained above, 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 the Agreement on Agriculture, and the Extension 
Agreement, by which its special treatment for ri ce was terminated 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 1 July 2012-30 June 2017. 
3.2.  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.2 
 
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  DRAFT DECISION ON WAIVER RELATING TO  SPECIAL TREATMENT FOR RICE OF THE 
PHILIPPINES 
DRAFT WAIVER DECISION OF [….] 20131 
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 08 February 2007; 
Recalling  that paragraph 5.1 of the Extension Agr eement 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 negotiations 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 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 on Ag riculture seeks 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 in creased 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 that this policy will continue so as to ensure 
food security and stimulate gradual and healthy 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; 
                                               
1 Adopted in accordance with the Decision-Makin g 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. G/C/W/665/Rev.2 
 
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  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 1 July 2012 to 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 A nnex A to this decision. The in-quota tariff on rice 
within the MMA shall be in accordance with the terms 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/…), 
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). 
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, 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  paragraph 2 and Annex A herein, this waiver 
shall terminate and the importation of rice shal l 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. 
                                               
3 G/MA/TAR/RS/99/Rev.1.  
  
  G/C/W/665/Rev.2  
 
- 5 - ANNEX A TO THE DRAFT WAIVER DECISION OF […] 2013 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% 
 
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 
 
1 July 2012/ 
30 June 2013 
 
1 July 2013 – 
30 June 2014 
 
1 July 2014 – 
30 June 2015 
 
1 July 2015 – 
30 June 2016 
 
1 July 2016 – 
30 June 2017   
NFA* 
 
 
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 1006.4 0 00 (Broken rice). 
2 As scheduled above or as scheduled under the ASEAN Trade in G oods Agreement (ATIGA) for the Phi lippines, whichever is lower. G/C/W/665/Rev.2 
 
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  Part II:  Country Specific Quotas (CSQs) 
WTO 
Member Annual CSQs, from 01 July 2012 to 30 June 2017 
(in metric tons and milled basis) 
 1 July 2012 –
30 June 2013 1 July 2013 – 
30 June 2014 1 July 2014 – 
30 June 2015 1 July 2015 – 
30 June 2016 1 July 2016 – 
30 June 2017 1 July 2012 – 
30 June 2013 
A       
B        
C       
D        
E       
F        
G       
 
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 Waiver 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. 
 
 
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