The Flawed Promise of Lower Rice Prices: Examining the Impact of the Tariff Reduction in the Philippines

Wazzup Pilipinas!?

In June 2024, the Philippine government, under the leadership of President Ferdinand Marcos Jr., implemented Executive Order 62, slashing the rice import tariff from 35% to 15%. The move, heavily endorsed by economic managers led by NEDA Secretary Arsenio Balisacan, was billed as a bold strategy to curb inflation and bring down skyrocketing rice prices. However, over six months later, the promised relief has yet to materialize. Instead, consumers and farmers alike are left questioning who truly benefited from this policy.

The Lofty Promises of Tariff Reduction

The premise of the tariff reduction was straightforward: cheaper import costs would translate to lower market prices for rice. It was estimated that this policy would bring down prices by as much as ₱7 per kilogram, a much-needed reprieve for Filipino households burdened by inflation. This measure came on the heels of the controversial Rice Tariffication Law (RTL) of 2019, which similarly promised lower rice prices through the liberalization of rice importation.

However, history appeared to be repeating itself. The RTL, authored by Senator Cynthia Villar and championed by then-Finance Secretary Carlos Dominguez, failed to deliver on its promise. Instead of reducing prices, it inadvertently empowered rice cartels and middlemen, who now dictate the supply and pricing of rice in the market. When EO 62 was introduced, critics warned that it might follow the same trajectory—and they were right.

The Reality: High Prices Persist

As of January 2025, the Philippine Statistics Authority reported that the average retail price of regular milled rice remains stubbornly high at ₱48.51 per kilogram. Even with the tariff cut, the Department of Agriculture (DA) was forced to implement a maximum suggested retail price (MSRP) of ₱58 per kilogram for imported rice to combat price surges. These measures, however, seem to be reactive band-aid solutions to a deeper systemic issue.

The failure to bring prices down has exposed the flawed assumptions behind the tariff reduction policy. The primary issue? Market forces and cartels remain unchecked. Despite reduced import costs, rice traders and importers have not passed on savings to consumers. Instead, they have reaped higher profits, leaving the Filipino people to bear the brunt of high prices.

The Double-Edged Sword for Farmers

While consumers struggle with high prices, local farmers face their own challenges. The influx of cheaper imported rice has dampened the competitiveness of Filipino farmers, many of whom already grapple with high production costs and insufficient government support. With the government losing an estimated ₱15 billion annually in tariff revenues due to EO 62, resources that could have been allocated to bolster local agricultural productivity are now out of reach.

This policy has been described as a "double whammy" by critics, harming both the government and the agricultural sector. Manny Piñol, former Agriculture Secretary, publicly warned against the move, citing its potential to erode government revenues and demoralize Filipino farmers. In a widely circulated post, he argued that lowering tariffs without addressing the control exerted by rice cartels was a recipe for failure.

Who Truly Benefits?

Analysts have pointed out that the real winners of the tariff reduction are the rice cartels and unscrupulous importers masquerading as legitimate traders. The lack of effective mechanisms to monitor and regulate market prices has allowed these groups to manipulate the system to their advantage. The DA has admitted that the policy did not achieve its intended goal, further fueling public outrage over what many perceive as a government failure.

The situation has drawn comparisons to South Korea and Japan, where tariffs on imported rice are as high as 500% and 800%, respectively. These countries prioritize protecting their farmers and ensuring food security, a stark contrast to the Philippines, where policies seem to favor importers over local producers.

Government’s Next Steps: Will They Be Enough?

Recognizing the policy’s shortcomings, the government is now exploring ways to rectify the situation. The National Food Authority (NFA) plans to purchase 300,000 metric tons of rice in 2025 to stabilize buffer stocks and influence market prices. However, this measure alone may not be sufficient to address the root causes of the problem.

Experts and stakeholders are calling for a comprehensive review of the country’s rice policies. Among the proposed solutions are reinstating the 35% tariff to protect local farmers, providing subsidies and modern equipment to improve agricultural productivity, and implementing stricter regulations to dismantle cartels. Critics argue that without addressing systemic corruption and conflicts of interest within policymaking bodies, any new measures may suffer the same fate as their predecessors.

A Broken Promise

The rice tariff reduction policy, much like the Rice Tariffication Law before it, has left many Filipinos disillusioned. What was marketed as a solution to high prices has instead deepened the struggles of both consumers and farmers. The question now is whether the government will take decisive action to correct course—or continue to allow powerful interests to dictate the fate of the nation’s rice industry.

Accountability and the Road Ahead

For many, the failure of the tariff reduction policy is not just a matter of flawed economic assumptions but a deeper issue of accountability. The public is demanding answers: Why were policies based on unrealistic projections? Who should bear responsibility for the continued suffering of millions of Filipinos? And most importantly, how can the country break free from the stranglehold of rice cartels and ensure food security for all?

These questions remain unanswered, but one thing is clear: the time for empty promises and half-measures is over. The Filipino people deserve a government that prioritizes their welfare over the profits of a few. It’s time to rewrite the narrative and rebuild trust in the nation’s agricultural policies—before it’s too late.

China Steps Up: A New Era of Global Leadership in Health and Climate

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In a bold move to cement its position as a global leader, China has vowed to remain committed to the World Health Organization (WHO) and the Paris Climate Agreement, despite the United States' recent withdrawal from these cornerstone international arrangements. This comes in response to U.S. President Donald Trump's controversial orders to distance America from these global initiatives, creating a vacuum that China appears ready to fill.

China’s Stand on the WHO

The World Health Organization, pivotal in coordinating global health efforts, has faced unprecedented challenges in recent years, especially during the COVID-19 pandemic. Criticisms have been levied at both the organization and China, particularly regarding the origins of the virus. However, Beijing has chosen to stay the course, emphasizing the importance of international cooperation in safeguarding global health.

"Health is a shared responsibility," a Chinese Foreign Ministry spokesperson stated, underscoring the need for collective action. This decision comes amidst calls for stronger funding and collaboration within the WHO, as echoed by former UK Prime Minister Gordon Brown, who stressed that an adequately supported WHO is crucial to preventing future pandemics.

While critics argue that China’s financial contributions to the WHO remain modest, its commitment to the organization signals a willingness to engage with global health issues, potentially redefining its role on the international stage.

A Leader in Climate Action?

The Paris Climate Agreement, a landmark accord aimed at combating climate change, has been a rallying point for nations determined to address one of humanity’s greatest challenges. With the U.S. now stepping back, China has reaffirmed its allegiance to the pact, positioning itself as a key player in the global fight against climate change.

China’s actions have not gone unnoticed. European leaders, gathered at the World Economic Forum in Davos, reaffirmed their commitment to the agreement. EU chief Ursula von der Leyen declared that the global energy transition is "unstoppable," emphasizing the necessity of ambitious climate goals. With China’s reaffirmation, the nation has the opportunity to lead by example—although it faces scrutiny for its current emissions, which are among the world’s highest.

Critics argue that China benefits from certain flexibilities within the Paris Accord, allowing it to increase emissions until 2030. However, Beijing maintains that its long-term climate strategies will align with the agreement’s goals, focusing on renewable energy investments and emissions reduction technologies.

Filling the Leadership Void

President Trump’s decisions to withdraw from the WHO and the Paris Agreement have drawn widespread criticism. Many view these actions as creating a leadership void in global health and climate initiatives—an opening that China seems eager to exploit.

China’s strategy is twofold: presenting itself as a responsible global stakeholder while simultaneously addressing domestic and international criticisms. The challenge lies in balancing these roles. While some accuse Beijing of leveraging these commitments for political gain, others see this as an opportunity for China to reshape its image on the world stage.

Global Reactions and Implications

The international community’s reaction to the U.S. withdrawal has been one of concern and resolve. European nations have pledged to uphold their commitments to climate action, and leaders worldwide have reiterated the importance of multilateral cooperation. As the U.S. steps back, the spotlight shifts to China—and the expectations are immense.

China’s commitment to the WHO and the Paris Agreement is not without challenges. The nation must address ongoing criticisms about its environmental policies and its role in the COVID-19 pandemic. However, by staying the course, China has a unique opportunity to redefine its global image and emerge as a leader in addressing two of the world’s most pressing issues: health and climate change.

Conclusion: China’s Moment to Shine

The stage is set for China to rise as a global leader. By reaffirming its commitments to the WHO and the Paris Climate Agreement, Beijing is sending a clear message: it is ready to step up where others have stepped back. This is China’s moment to showcase its dedication to global health and environmental sustainability, proving that it can be a force for good in an increasingly interconnected world.

The question now is whether China can meet the heightened expectations of the global community. As the world watches, Beijing’s actions will determine whether it can transform rhetoric into meaningful leadership—and whether this marks the beginning of a new era in international cooperation.

Undocumented Filipinos in the U.S. Face a Tough Choice Amid Trump’s Intensified Deportation Policies

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The United States has seen a renewed wave of fear and uncertainty among immigrant communities as U.S. President Donald Trump intensifies efforts to deport undocumented immigrants. With mass deportations and border crackdowns dominating headlines, many undocumented Filipinos in the U.S. are making the difficult decision to return to the Philippines voluntarily to avoid detention or forced removal.

A Tough Decision for Filipinos

Philippine Ambassador to the U.S., Jose Manuel "Babe" Romualdez, revealed that several undocumented Filipinos have already approached the embassy seeking assistance. While some opt to fight for their right to stay with the help of immigration lawyers, others have chosen to return home, preferring to leave voluntarily rather than face the trauma of deportation.

Romualdez emphasized that President Trump’s deportation policy prioritizes individuals with criminal records or those deemed threats to national security. "Yung talagang hahabulin at gustong ideport ay 'yung talagang may criminal record... 'yan ang uunahin," he said. Despite this, the policies have created a ripple effect, with law-abiding undocumented immigrants fearing they could be next.

To support affected Filipinos, the Philippine Embassy and consulates across the U.S. have ramped up efforts to provide legal advice and assistance. Filipino-American immigration lawyers have stepped forward to offer pro bono services, while advocacy groups are conducting "know your rights" workshops to educate immigrants about their legal options.

Trump’s Aggressive Immigration Agenda

President Trump has made immigration enforcement a cornerstone of his administration. Recently, he issued executive orders expanding expedited deportation processes and mobilizing 1,500 additional troops to the U.S.-Mexico border. This move, coupled with the construction of physical barriers like floating buoys along the border, has heightened the sense of urgency among undocumented communities.

The Department of Homeland Security has also granted federal agencies broader powers to detain and deport individuals without trial. These actions are part of Trump’s broader strategy to curb illegal immigration, which he has repeatedly linked to national security concerns.

Undocumented Filipinos: A Community at Risk

The U.S. is home to an estimated 370,000 undocumented Filipinos, although the actual number may be higher. Many have lived in the U.S. for decades, contributing to the economy, paying taxes, and raising families. Despite their contributions, they now find themselves in a precarious position.

"Why should law-abiding immigrants who have paid taxes and followed the rules feel scared? The fear stems from the uncertainty and sweeping nature of these policies," said an immigration advocate.

The situation has left many Filipinos torn between staying in a country they’ve called home for years and returning to the Philippines, where economic opportunities might be limited.

The Philippine Government’s Response

The Philippine government, through the Department of Migrant Workers (DMW), has expressed its commitment to assist both documented and undocumented Filipinos facing deportation. A whole-of-government approach has been adopted to ensure returning Filipinos are reintegrated into society.

In addition, the government is working with international organizations and local NGOs to provide livelihood programs and reintegration assistance to those returning home. “We are ready to help our kababayans,” said a DMW spokesperson.

The Bigger Picture

While the Trump administration defends its policies as necessary for national security, critics argue that the measures disproportionately affect immigrant communities, many of whom contribute positively to American society.

Advocates are also questioning the administration’s focus, pointing out that American citizens who commit heinous crimes often face less scrutiny than undocumented immigrants who pose no threat. The disparity highlights the need for a more nuanced and humane approach to immigration.

Moving Forward

For undocumented Filipinos in the U.S., the choice is stark: fight for their right to stay or return to a homeland they may have left decades ago. As President Trump’s immigration agenda continues to unfold, the Philippine government, advocacy groups, and legal experts are stepping up efforts to protect and support those caught in the crossfire.

This moment serves as a reminder of the resilience and resourcefulness of the Filipino diaspora, even in the face of immense challenges. For many, the journey ahead remains uncertain, but their courage and determination to secure a better future will undoubtedly guide them through these trying times.