"Thailand said they can accommodate us in sugar, but they are having difficulties with our rice [proposal]. They asked for a new formula before the month ends. But that means to say, they are okay with the idea," Mr. Favila said.
Neither Agriculture officials nor those of the Thai embassy in Manila could be immediately reached to verify Mr. Favila’s statement.
Under an Association of Southeast Asian Nations Free Trade Area (ASEAN-AFTA) tariff scheme, the Philippines’ sugar tariffs must be lowered to 0%-5% next year from its current 28% level.
Rice, meanwhile, will retain its 40% tariff until 2012, after which the Philippines must cut rates to a still unspecified level.
The Philippines, having tagged rice as a highly-sensitive product, has the prerogative under a 1999 protocol to assign an ending rate on the good.
Mr. Favila was unable to elaborate on what the Philippines proposed as the new ending rate and tariff cut dates for the two goods, although Agriculture Secretary Arthur C. Yap had said in April that a five-year delay would be apt.
"Thailand was very accommodating. They acknowledged the fact that both sugar and rice are sensitive for us," Mr. Favila said.
The Southeast Asian neighbor is among the country’s top sources of the two agricultural commodities. Thai suppliers made up roughly 90% of a 75,000-ton rice import order the government awarded last month. Thailand has also been tagged by the local sugar industry as a competitor.
Thailand has not yet indicated what it wants in exchange for the delay in tariff cuts, Mr. Favila said.
"To manage expectations regarding compensation, I said we have a procurement law so we can’t give them import preference. But they usually win the biddings anyway, so it might not be a problem," Mr. Favila said in Filipino.
Other ASEAN ministers, meanwhile, said they had to check with their leaders before they provide their position on the matter, Mr. Favila added.
ASEAN leaders are slated to meet in Hua Hin, Thailand in October. — Jessica Anne D. Hermosa
