RESTRICTED
WORLD TRADE G/STR/N/1/PHL
16November 1995
ORGANIZATION(95-3553)
Original: English
STATE TRADING
Notification Pursuant toArticle XVII:4(a) oftheGATT 1994 and
Paragraph 1oftheUnderstanding ontheInterpretation ofArticle XVII
PHILIPPINES
Thefollowing communication, dated 27October 1995, hasbeenreceived fromthePermanent
Mission ofthePhilippines.
_______________
I. Enumeration ofState Trading Enterprises
TheNational Food Authority (NFA) isthestateenterprise which trades inriceandcorn.
II. Reason andpurpose forintroducing andmaintaining statetrading
NFA wassetuptolookafterthefoodsecurity requirements ofthecountry through agrain
(riceandcorn) buffer stock. Thisbuffer stock isusedtoaddress calamities andemergencies.
III. Description andfunctioning ofthestatetrading enterprise
1. Import andexport ofriceandcorn.
2. Undertake price andsupply stabilization ofriceandcorn.
3. Sellriceataprice within thereach ofthegeneral population.
4. Handle thestocking ofother basic commodities asneeded.
5. Private traders areallowed toexport andimport (except forrice)depending onthe
supply-demand situation ofthecountry.
6. Quantities allowed forexport orimport depends ontheexcess orshortfall ofthe
actual/projected national inventory compared tothedesired buffer stock ofthecountry.
7. Export prices areprimarily based onworld market prices.
./.G/STR/N/1/PHL
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IV. Statistical information
Therelevant figures forproduction, imports andexports ofriceandcornareasfollows:
Commodity YearProduction
(million
tons)Import Export
Quantity
(m.tons)Value
(US$m.)Quantity
(m.tons)Value
(US$m.)
Palay
(unhusked
rice)1992
1993
19949,128.0
9,434.0
10,538.0None
209,994.2
None37.7929,618.95
None
None6.193
Corn 1992
1993
19944,558.0
4,798.0
4,519.0None
None
NoneNone
None
None
V. Reasons whynoforeign trade hastaken place
1. Thecountry didnotimport ricein1992 and1994 because thecountry hadasufficient rice
stock. Because oftightsupply in1993, thecountry imported ricetobeefuplocalstocks. Therice
export in1992 waspartofaloanrepayment toIndonesia.
2. Thecountry didnotimport cornin1992to1994because thecountry attained self-sufficiency
incornproduction.