The Department of Agriculture (DA) on Friday revealed that it terminated its safeguard investigation on rice imports pending a dialogue with the government’s economic managers.
“We started the study on the possibility of having to tap the general safeguards duty. The decision of the department is to have this discussed first with economic development managers,” said William Dar, the department’s chief, in a five-minute “press briefing” on Friday.
“That’s our decision: we terminated the first study. We will now actively discuss with the economic development managers on October 24,” Dar added.
Dar’s disclosure came a day after the DA’s 30-day deadline to reveal the findings of its preliminary safeguard investigation.
Under Republic Act 8800 or the Safeguard Measures Act, the Agriculture Secretary “shall terminate” a safeguard investigation if their preliminary findings “are negative,” or do not meet the criteria set to impose a safeguard duty.
Last September 11, the DA started the surge in rice imports following the plunge in the farm-gate prices of local rice, to determine whether it warranted safeguard measures.
The results of the investigation could have led to the imposition of a provisional duty to temporarily increase rice tariffs pending final determination by the Tariff Commission.
“I will not telegraph the findings of the first study, we have terminated it. We will discuss it with the economic development managers,” Dar said when asked about the investigation results.
On the forthcoming talks with economic managers, Dar said they are aware of the current situation of the local rice industry, and “all measures are being discussed.”
On October 10, the BusinessMirror reported that reliable government sources said the Cabinet-level Economic Development Cluster (EDC) wants to discuss the proposed imposition of a safeguard duty on rice imports before the DA moves ahead with the results of its preliminary investigation.
However, Dar was mum on whether the EDC intervened in the safeguard investigation of the DA when he was asked by the press on October 9.
Factors to determination
Under RA 8800’s implementing rules and regulations (IRR), the secretary shall “essentially determine” five factors in its preliminary determination.
First, if there was an increase in imports, either in absolute terms or relative to domestic production, in the last five years preceding the application to substantiate claims of significant increase in import volume.
Second, the “presence and extent of serious injury or threat thereof to the domestic industry producing the like or directly competitive product.”
Third, the “causal relationship between the increased imports of the product under consideration and the serious injury or threat thereof to the affected domestic industry.”
Fourth, the impacts of seasonality of products, whenever, applicable.
“That there has been a substantial increase in imports taking into account their volume and whether or not there has been a rapid accumulation of inventories of the domestic product, and a reduction in sales and profit margins of the domestic industry,” it added.