DA: PH presses Vietnam on fair rice trade

MANILA, Philippines – The Department of Agriculture is pushing for fairer rice trade deals with Vietnam to resolve long-standing concerns over the implementation of agricultural trade agreements.

In a statement, Agriculture Secretary Francisco Tiu Laurel Jr. said one of the country’s major concerns is that Vietnamese exporters usually rescind supply contracts when rice prices increase.

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“The contract enforcement problem has prompted Philippine industry stakeholders and government agencies to negotiate with Vietnam through a more coordinated approach,” Tiu Laurel said.

In particular, Manila will seek stronger contract enforcement mechanisms “to ensure greater predictability in agricultural transactions between the two countries,” the agency said.

Tiu Laurel said the Philippine government will raise this issue in future bilateral talks with its neighboring country to make trade arrangements more reliable and efficient.

Vietnamese Industry and Trade Minister Le Manh Hung, for his part, said they would escalate the matter to Vietnam’s Ministry of Agriculture and Environment for further discussion.

The Philippines and Vietnam also urged the reinforcement of the bilateral technical mechanisms for the Joint Trade Committee (JTC) and Joint Committee on Agriculture (JCA) this year to tackle concerns of both countries.

The DA’s pronouncement came after President Marcos and Vietnamese President Tô Lâm committed to surpassing the $10-billion bilateral trade target.

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The country also aims “ to narrow a persistent trade gap that heavily favors Vietnam,” it added.

Citing government data, the DA said Vietnam remains the Philippines’ largest source of imported rice, contributing to a trade deficit estimated at approximately $2.7 billion.

According to the Bureau of Plant and Industry, Vietnam accounted for 85.21 percent of 2.12 million metric tons (MT) of imported rice that reached the Philippines as of May 21.

Vietnam exported 1.8 million MT of rice to the archipelago during the period.

The country imported $747.83 million worth of agricultural products from Association of Southeast Asian Nations (Asean) member countries, mostly from Vietnam, with a share of $208.52 million or 27.9 percent, data from the Philippine Statistics Authority showed. /pai INQ