ON WTO OBLIGATIONS

1. Counsel, are you aware of the membership agreement that we had with the World
Trade Organization?
2. Are you aware of our responsibilities in the said membership agreement?
3. Do you know that it is our obligation to shift from restriction of rice importation to
rice tariffication?
4. Do you know that we had already exceeded the allowable grace period granted by
the WTO to extend quantitative restriction?
5. Are you aware that upon the passing of the RTL, we have been using other legal
measures such as declaration of emergency situation, imposing non-tariff barriers
or sacrificing more products through lower tariffs in exchange for maintain the
QRs?
a. This have been done at the expense of economic stability giving our
farmers a false illusion that there is security for them to the point that
nothing has been done to uplift their current situations.
6. Are you aware that by complying with our obligation we are spared from being
economically sanctioned by our trading partners?
a. Your honors, in connection to our compliance with these obligations we are
given the incentive to apply for special treatment in certain products as
mandated by Annex 5 of Agricultural agreement with WTO.
7. Have you read the case of Tanada vs Angara?
a. Well to enlighten everyone, in application of the doctrine of incorporation,
the agreement we had with the WTO forms part of the law of the land in
consonance with pacta sunt servanda which is to honor international
agreement and must be performed in good faith.
8. Counsel, are you aware that it is a constitutional policy that the Philippines must
be a self-reliant and independent national economy?
a. Your honors, as ruled in the case of Tanada vs Angara, the said
constitutional policy does not necessarily rule out the entry of foreign
investments, goods and services. It contemplates neither economic
seclusion nor mendicancy in the international community but to uphold
amity with all nations.
ON THE SUFFICIENCY OF FUND ALLOCATION

1. Good evening counsel, you are familiar with the rice industry situation, correct?
2. And that the projected impact of RTL to farmers amounts to 19 billion pesos,
correct?
3. And you know for a fact that in Section 13 of RA 11203, the RCEF allocates 10
billion per year for programs and activities intended for farmers, correct?
4. Now counsel, have you come across Joint Resolution 19, series of 2019?
a. This was issued giving another 10 billion allocation for rice subsidy and
purchase of palay from the farmers and another 3 billion as cash subsidy to
the farmers to be given before Christmas on top of the 10B RCEF to
address the current struggle of our farmers.
5. Facts check counsel. Do you know that in December 2018, the DBM already
released 5billion to DA on top of its 2019 RCEF budget of 10 billion for the
National Rice Program to assist farmers in facing the possible adverse effects of
lifting the rice QR?

6. Did you know that under the General Appropriations Act allocates a total of 33.9
billion in total for rice subsidy and rice programs in connection with the Pantawid
Pampamilyang Pilipino Program.

7. Do you know that this budget allocation for rice aside from the 28 billion will not
replace any existing budget and program by the DA and other agencies for rice and rice
farmers?

8. On a different note counsel, are you familiar with the Seed Industry Development Act
or RA 7308? It provides that the prohibition on importation of rice seeds as planting
materials shall stand because it is not repealed by the RTL. So the market will not be
flooded with too much competition.
ON INFLATION AND DEFLATION OF PRICES

1. Counsel, are you familiar with the concept of inflation?

2. Are you aware that in 2018, rice was the number one driver of high inflation
contributing one full percentage point to the 2018 inflation?
3. Would you agree with me that high price of rice brings hardship especially to poor
households, spending around 40% of their family budget on rice.
4. And that by virtue of the RTL, by spending less for the same amount of rice, poor
households could then increase expenditures on other items especially on
education, nutrition and other affecting factors in building a strong family.
5. Did you know that by September 2019, our inflation rate is at 2.8% according to
the BSP with the lower price of rice as a major contributor to this significant
decrease?
6. Are you familiar with the ill effects of the previous rice industry situation?
a. Your honors, there is lower real income for farmers because while they may
gain from higher prices during harvest, they buy expensive price during the
rest of the year.
7. That also in the past, there are reduced employment opportunities because the high
price of rice has put undue pressure on the minimum wage rate increasing labor
cost and making manufacturing uncompetitive.
a. As of December 2018, the subsidy to the NFA has cost taxpayers 140.5
billion and with the removal of the function to the NFA, this will free up
public funds for other purposes also allowing the private sector to handle
importation will address these problems.
8. Counsel, do you know how much is the price of rice in the market today compared
to the same week a year ago?
a. Your honors, as reported by the PSA the average price of well milled rice
today is P37.33/Kg compared to P42.64/Kg in the same week of the
previous year.

2.8% inflation results to lower prices of commodities including rice, which results
to higher purchasing power for the Filipino Family. We can now combat and mitigate
malnutrition, uncompetitive labor, and deprivation of social services; these are all made
to happen by the passing of the Rice Tariffication Law.
ON OUTRIGHT REPEAL OF RICE TARIFFICATION LAW

1. Counsel, you are familiar of the programs under the rice competitiveness
enhancement fund, correct?
2. Then you know for a fact that under Section 13 of RA 11203, half of the allocation
is for rice mechanization in order to procure rice production equipment, correct?
3. Are you aware of the difference between the marketing cost including the milling
and drying of palay between the Philippines, Vietnam and Thailand? Up to 50%
higher
4. Are you aware that the reason why these countries aside from us to produce low
price is because they have significant lower transport and milling cost? 45% and
29% respectively which amounts to P2 to P5 difference.
5. With all of these differences your honors, we could never be at par with these
countries aside from our geographic and topographical disadvantage.
6. However, with the advent of the Rice Tariffication Law, our farmers can now avail
of programs which will provide for more industrialize rice production leaving the
farmers with lesser production and marketing cost resulting to higher price yield.
7. Are you aware that the rice fund will not replace other assistance provided to rice
farmers?
a. Your honors, the rice fund is on top of regular funds of the DA used in
programs and assistance for rice farmers.
8. Counsel, are you aware that we have already devoted enough resources to make us
rice self-sufficient?
a. Your honor, 70% of the yearly budget allocation for DA is spent on rice
productivity–enhancement program, hence, the development of other crops
with comparative advantages like abaca, banana and coconut was utterly
neglected.

We have soothed all kinds of mechanisms in order to become rice self-sufficient. Many
DA Secretaries have tried and failed. Until now we cannot produce enough. It is high
time that rice importation be used at our advantage.