AGRICULTURE Secretary Arthur Yap said the ball in the negotiations on rice tariffs is now in Thailand's court.

Negotiations between Philippines and Thailand over rice tariffs that will affect trade relations in Southeast Asia, which will build a Europe-style economic community, did not reach an agreement.

For updates from around the country, follow Sun.Star on Twitter

Thailand wants the Philippines to lower its tariffs on rice from 40 percent to 25 percent by January 1, 2010 but Philippine Agriculture Secretary Arthur Yap insisted that rice is included in the "highly sensitive list," which means that tariffs are allowed to stay at 35 percent.

"It is well within our rights to prescribe. It is well within the protocol that it is legally allowed for tariffs of highly sensitive products to be at 35 percent," Yap said Monday in an interview in Makati Shangri-la Hotel.

To compensate for not lowering down the tariff to 25 percent, the Philippines has proposed to provide to provide 50,000 metric tons of rice as a country-specific quota, according to Yap. Another 200,000 metric tons can also be negotiated on a government to government (G2G) basis.

"We are also open to offer to an upwards level. But we have to see. It depends on Thailand's position," he said.

Yap added that the Philippines has never been this patient, and even proposed a bigger G2G volume.

"We are already doing this in good faith. We are even willing to go the extra mile," he said.

Yap also said that the Philippines is already offering end rates that are smaller than the applied rate.

"We are calling on Thailand to unify their position on what to do in 2010. It is very clear. It should have been forty percent in 2010 and 35 percent in 2015," he said. "We are just waiting for you. The ball is not in our court."

The Philippines is also in talks with other rice suppliers.

Yap counted the possibility of private sector and harvest coming from the Visayas. (Angela Casauay/Sunnex)