Tariffication

The main drivers, he said, are the Regional Comprehensive Economic Partnership (RCEP) and the Rice Tariffication Law (RTL).

Agriculture Secretary Francisco Tiu Laurel Jr., who was interviewed after the signing, said the amended Rice Tariffication Law would lower retail rice prices in the country.

RCEF was created by virtue of the Rice Tariffication Law, which mandated the national government to set aside P10 billion of tariffs collected from imports to be earmarked for the fund.

Rice tariffication and amendments to the Bangko Sentral ng Pilipinas (BSP) charter will further underscore the Philippines’ investment grade rating, Moody’s Investors Service indicated on Monday.

The P10 billion promised to small farmers under the rice tariffication will go the way of the ACEF — a fund that guarantees the exclusion of small farmers.

The planned move is part of the agency’s tasks in connection with the implementation of the Rice Tariffication Law.

Arbis was referring to the proposed Rice Tariffication Act, which the government says will bring rice prices down by about P7 per kilo by removing quantitative restrictions on imports of the grain.

The IMF official said the multilateral agency supports the proposed rice tariffication since this is expected to lead to lower rice prices and eventual deceleration of inflation rate.