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Advocates Philippines
PBBM Welcomes Vietnam's Proposal For Five-Year Rice Importation Agreement
Photo credit: PCO
President Ferdinand Marcos Jr. expressed his support for Vietnam's suggestion of a five-year rice importation arrangement during a bilateral meeting with Vietnamese Prime Minister Pham Minh Chinh at the 43rd Association of Southeast Asian Nations (ASEAN) Summit in Jakarta. The proposal aims to stabilize rice supply and pricing in the Philippines amidst ongoing volatility in the rice market.
Prime Minister Pham Minh Chinh recommended the creation of a comprehensive five-year rice supply agreement between Vietnam and the Philippines. He emphasized that the Ministries of Trade and Agriculture of both nations should collaborate to formulate this agreement, allowing market forces to determine the quantity and pricing of rice exports.
President Marcos acknowledged the current market instability and the necessity for adjustments by each country. He emphasized the importance of a longer-term arrangement to provide stability not only for the Philippines but also for the entire region.
"We will work continuously. We have managed agreements on rice importation before, and I am confident that we will once again reach a consensus and agree," President Marcos assured Prime Minister Pham Minh Chinh.
The Philippines had previously signed a Memorandum of Agreement (MOA) on the Supply of Vietnamese Rice in May 2008, allowing Vietnam to supply up to 1,500,000 metric tons of rice to the Philippines from 2008 to 2010. However, the Rice Tariffication Act (RA 110203) passed in March 2019 liberalized commercial rice importation in the Philippines, altering the rice import landscape.
Despite these changes, bilateral rice trade between the Philippines and Vietnam has remained robust, with Vietnam supplying approximately 90 percent of the Philippines' rice imports. From January to July 2023, Vietnam exported 4.84 million metric tons of rice valued at US$2.58 billion. Over the first five months of the year, the Philippines imported 1.5 million tons of rice from Vietnam, totaling US$772.4 million, equivalent to 42.3 percent of Vietnam's total rice exports during that period.
During their meeting, President Marcos also discussed the potential for fisheries and maritime cooperation with Vietnam, aiming to protect the livelihoods of ordinary fisherfolk. He stressed the importance of addressing not only security and defense issues but also fishing rights to prevent conflicts between the two nations' fishermen.
Prime Minister Pham Minh Chinh recommended the creation of a comprehensive five-year rice supply agreement between Vietnam and the Philippines. He emphasized that the Ministries of Trade and Agriculture of both nations should collaborate to formulate this agreement, allowing market forces to determine the quantity and pricing of rice exports.
President Marcos acknowledged the current market instability and the necessity for adjustments by each country. He emphasized the importance of a longer-term arrangement to provide stability not only for the Philippines but also for the entire region.
"We will work continuously. We have managed agreements on rice importation before, and I am confident that we will once again reach a consensus and agree," President Marcos assured Prime Minister Pham Minh Chinh.
The Philippines had previously signed a Memorandum of Agreement (MOA) on the Supply of Vietnamese Rice in May 2008, allowing Vietnam to supply up to 1,500,000 metric tons of rice to the Philippines from 2008 to 2010. However, the Rice Tariffication Act (RA 110203) passed in March 2019 liberalized commercial rice importation in the Philippines, altering the rice import landscape.
Despite these changes, bilateral rice trade between the Philippines and Vietnam has remained robust, with Vietnam supplying approximately 90 percent of the Philippines' rice imports. From January to July 2023, Vietnam exported 4.84 million metric tons of rice valued at US$2.58 billion. Over the first five months of the year, the Philippines imported 1.5 million tons of rice from Vietnam, totaling US$772.4 million, equivalent to 42.3 percent of Vietnam's total rice exports during that period.
During their meeting, President Marcos also discussed the potential for fisheries and maritime cooperation with Vietnam, aiming to protect the livelihoods of ordinary fisherfolk. He stressed the importance of addressing not only security and defense issues but also fishing rights to prevent conflicts between the two nations' fishermen.
Sep 8, 2023
