105 Philippine Social Science Center (PSSC) Commonwealth Ave., Diliman, Quezon City

Telefax: (632) 4532375 (Main Office) Tel No.: (632) 8939602 (Accounting)

Website: www.fef.org.ph Email: fefphilippines@gmail.com / fef@fef.org.ph

Foundation for Economic Freedom

BOARD OF ADVISERS:

Gerardo Sicat

Cesar A. Virata

BOARD OF TRUSTEES:

Roberto De Ocampo Chairman Romeo Bernardo Vice-Chairman Calixto Chikiamco President Ernest Leung Treasurer Atty. Ricardo Balatbat III Corporate Secretary Anthony Abad Art Corpuz Eduardo Gana Felipe Medalla Vaughn Montes Simon Paterno Perry Pe Gloria Tan-Climaco

Atty. Maria Gracia Gamez Asst. Corporate Secretary and Director for Policy and External Relations

FEF HAILS CABINET’S DECISION NOT TO EXTEND QUANTITATIVE RESTRICTIONS ON RICE AND

URGES LIBERALIZATION OF RICE IMPORTS

We, the Foundation for Economic Freedom (FEF), an organization dedicated to market-

oriented reforms, well-defined and secure property rights, consumer welfare, and good

governance, hail the Cabinet’s decision not to seek an extension of the quantitative restrictions

on rice, as announced by Socio-Economic Planning Secretary Ernesto Pernia.

Non-extension of quantitative restrictions on rice will pave the way for the liberalization

of rice imports, which will lead to lower rice prices, reduction in hunger, and lower inflation.

Lower rice prices and higher disposable incomes for the poor, in turn, will boost the country’s

competitiveness, improve quality of life, and lead to a reduction in malnutrition. Reports show

that the previous administration’s policy of high rice prices by limiting rice imports to encourage

rice self-sufficiency had resulted in higher poverty incidence and increased malnutrition.

Furthermore, we urge the Duterte administration to institutionalize the liberalization of

rice imports by seeking legislation to abolish the National Food Authority’s virtual legal rice

monopoly. Instead of being a monopoly rice trader, the NFA should be limited into an agency

maintaining rice buffer stocks against an unpredicted rice shortage.

We also recommend the imposition of reasonable tariffs on rice imports under a regime

of free rice trade. The tariff revenue raised should then be used to help rice farmers to increase

their productivity or diversify into higher value-added crops.

Release Date: September 9, 2016

105 Philippine Social Science Center (PSSC) Commonwealth Ave., Diliman, Quezon City

Telefax: (632) 4532375 (Main Office) Tel No.: (632) 8939602 (Accounting)

Website: www.fef.org.ph Email: fefphilippines@gmail.com / fef@fef.org.ph

For more information, please check our website: www.fef.org.ph, or contact the following:

Ranna Pintor, Senior Program Officer – rannapintor@yahoo.com /+63 2 453 2375

Mabel Almenteros, Communications Officer – mialmenteros@fef.org.ph/ +63 2 453 2375