   
  
G/AG/W/200  
 
14 June 2019  
(19-4065) Page: 1/6 
Committee on Agriculture  Original: English  
 
SPECIAL SAFEGUARD (S SG) MEASURES OF THE PHILIPPINES  
ON INSTANT COFFEE AN D EXTRACTS OF COFFEE  
COMMUNICATION FROM I NDONESIA  
PURSUANT TO ARTICLE 18.7 OF THE AGREEMEN T ON AGRICULTURE  
The following submission, dated 13 June 2019, is being circulated at the request of Indonesia . 
 
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1  THE PHILIPPINES’ SSG  ON INSTANT COFFEE A ND EXTRACTS OF COFFE E  
1.1.  This document is prepared and presented for the purpose of a discussion. Referring to the 
Philippines’ import statisti cs data which is publicly available1, Indonesia has compiled data and 
information on the trigger prices of Instant Coffee and Extracts of Coffee pertaining to the Special 
Safeguard (SSG) measures invoked by the Philippines. Based on Article 18.7 of the WTO  Agreement 
on Agriculture (AoA), Indonesia presents this information to other Members in the interest of 
promoting transparency surrounding the Philippines’s trigger price on Instant Coffee and Extracts of 
Coffee. Section 2 of this document explains findin gs and calculations. Section 4 contains the 
conclusion on the issue of trigger price determined by the Philippines on SSG of Instant Coffee and 
Extracts of Coffee.  
1.2.  Provision in Articles 5.1 (b) of the AoA requires that the trigger price be based on the av erage 
prices of 1986 to 1988. Article 5.7 of the AoA determines that the operation of special safeguard 
shall be carried out in a transparent manner. Furthermore, it requires that any Member taking 
safeguard shall give notice in writing to the Committee on  Agriculture, which requires that the 
notification includes relevant and publicly specified data. Indonesia raised questions for the basis of 
the Philippines to determine and notify the trigger price of Instant Coffee and Extracts of Coffee to 
the WTO (Up -front Notification of Trigger Prices from Philippines to WTO through Notification Letter 
G/AG/N/PHL/27 dated 23 September 2002 and Ad Hoc Notification of Trigger Prices from Philippines 
to WTO through Notification Letter G/AG/N/PHL/53 dated 30 April 2018).  
1.3.  This document is limited to the specific issue of the Philippine’s trigger prices on Instant Coffee 
and Extracts of Coffee.  
2  FINDINGS  
2.1.  The trigger price of Instant Coffee and Extracts of Coffee notified by the Philippines to the WTO 
on 23 September 2002 an d 30 April 2018 was only based on the data for 1986, which was 
₱203.74  per kilogram.  
2.2.  With prior approval from the Philippines, Indonesia has raised questions (AG -IMS ID 88126) in 
previous 88th CoA on 25 -26 September 2018 regarding the reference price for the year 1987 
and 1988. The Philippines responded to Indonesia’s queries in the 89th CoA 
on 26-27 November  2018 (as stated in document G/AG/W/187) that no reference price was 
                                                
1 1986 Foreign Trade Statistics, National Statistics Office, Republic of The Philippines; 1987 Foreign 
Trade Statistics, National Statistics Office, Republic of The Philippines; 1988 Foreign Trade Statistics, National 
Statistics Office, Republic of The Philippines.  G/AG/W/200  
 
- 2 - 
 
  provided for the year 1987 and 1988 due to the fact that no commercial importatio n of the concerned 
products took place in both year 1987 and 1988.  
2.3.  Indonesia found that based on the Philippines’ import statistics the import price of Instant 
Coffee and Extracts of Coffee existed not only in 1986 but also in 1988. As such, to be fully co nsistent 
with Article 5.1 (b) of the AoA, the trigger price for Instant Coffee and Extracts of Coffee is to include 
import price of 1986 and 1988. In light of the requirement of Article 5.1 (b) of the AoA and the 
import price of Instant Coffee and Extracts  of Coffee found in the Philippines import statistics, their 
average price of 1986 —1988 is ₱154.85 per kilogram (see the Calculation Appendix 1 attached to 
this document).  
Instant coffee (HS: 2101.11.10) refers to Extracts, essences or concentrates of coff ee & 
preparations w/ a basis of those extracts, essences & concentrates; Roasted chicory & other 
roasted coffee substitutes & extracts (SITC Rev.2 Code: 071.20).  
 
2.4.  Indonesia also acknowledges that we did not provide any comments to the Philippines 
notifications G/AG/N/PHL/27 on 23 September 2002 regarding the trigger price of ₱203.74 per 
kilogram. Nevertheless, as reiterated by the Philippines  to the queries raised b y New  Zealand 
(AG-IMS ID 88022), despite the country’s right to apply SSG and invoke its right to use the remedy, 
the notification does not necessarily depict actual applications of the measure.  Indonesia has only 
been adversely affected by the Philippines invocation of th e measure in 2018 through SSG. Having 
substantial interest in the application of SSG by the Philippines, Indonesia urgently raises its findings 
and comments on the trigger price notification provided under G/AG/N/PHL/27.  
2.5.  In light of this important finding s, the present Philippines' trigger price has far exceeded the 
correct trigger price and, in order to be consistent with the AoA, correction to the existing trigger 
price of Instant Coffee and Extracts of Coffee as per WTO notifications by the Philippines is required.  
3  CURRENCY  
3.1.  The currency is in the Philippines Peso (₱). The exchange rates are based on the data from 
Banko Sentral NG Pilipinas.  
4  CONCLUSIONS  
4.1.  The Philippines’ determination of Trigger Price of Instant Coffee and Extracts of Coffee as set 
forth in the relevant WTO Notification has far exceeded the correct average price of imports of 
Instant Coffee and Extract Coffee as determined by Article 5.1 (b) of the AoA.  
4.2.  As one of main exporters of this product category, Indonesia expects that the Philipp ines will 
seriously consider our findings on this important matter.  
4.3.  Indonesia looks forward to having a productive discussion on the correct determination of the 
Philippines’ trigger price of Instant Coffee and Extracts of Coffee to ensure its consistency with 
the AoA.  
Appendices:  
 
1. Calculations on Trigger Price of SSG on Coffee;  
2. Coffee Prices in 45 years;   
3. Coffee Prices 1986 -1988;  
4. Coffee Prices in 1986, 1987, 1988.  
  
  G/AG/W/200  
 
- 3 - APPENDICE 1 - CALCUL ATIONS ON TRIGGER PR ICE OF SSG ON COFFEE  
The Philippines notified the WTO: ₱203.74 per kg. The average CIF price of 1986 —1988: ₱154.85 per kg.  
 
 
  
 
  G/AG/W/200  
 
- 4 - APPENDIX 2 - COFFEE PRICES – 45-YEAR HISTORICAL CHAR T 
Average Price in 1986: 1.94 USD/pound = 4.28 USD/kg or equal to 90.32 PhP/kg  
Average price 1986 —1988: 1.48 USD/pound = 3.28 USD/kg or equal to 67.79 PhP/kg  
 
 
Source: https://www.macrotrends.net/2535/coffee -prices -historical -chart-data, accessed on 10 April 2019  
  
 
  G/AG/W/200  
 
- 5 - APPENDIX 3 - COFFEE PRICES IN 1986 —1988  
 
 
Source: https://www.macrotrends.net/2535/coffee -prices -historical -chart-data, accessed on 10 April 2019 . 
  
 
  G/AG/W/200  
 
- 6 - APPENDIX 4 – COFFEE PRICES IN 1986, IN 1 987 
Coffee Prices in 1986  Coffee Prices in 1987  Coffee Prices in 1988  
 
  
  
 
 
http://futures.tradingcharts.com/historical/CF/1986/0/continuous.html  
 
Prices of Cofree  1986  1987  1988  Average  
Peak Price  2.58 USD/pound  1.33 USD/pound  1.59 USD/pound  1.83 USD/pound  
Lowest Price  1.33 USD/pound  1.00 USD/pound  1.08 USD/pound  1.14 USD/pound  
Average Price 1986  1.96 USD/pound  1.16 USD/pound  1.34 USD/pound  1.49 USD/pound  
Average Price 1986 -1988 1.48 USD/pound = 3.27 USD/kg or equals to 67.71 PhP/kg  
 
 
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