Compensatory Payment Scheme for Rice Farmers after Tariffication

Abstract

In 1995, the Philippines was granted special treatment in rice, which allowed the country to maintain its import monopoly and quantitative restrictions (QRs). The expiration of this privilege in 2017 signals a greater competition from imports and the decline in domestic prices, which will reduce farmers’ income. This Policy Note presents an assessment of agricultural support options for rice farmers upon the lifting of the special treatment. It discusses and assesses program features of alternative schemes based on their compliance with the standards of the World Trade Organization (WTO), financial viability, and political acceptability.