BANGKOK, 3 September 2014 – The National Council for Peace and Order (NCPO) has approved the signing of a rice trade agreement between Thailand and the Philippines while putting the Commerce Ministry in charge.
A resolution has been made by the NCPO to give full authority to the Ministry of Commerce to strike a government-to-government (G2G) contract with the Philippines on rice sales. An authorization document is to be issued by the Ministry of Foreign Affairs for the Commerce Minister or his representative to take part in the signing.
The content of the draft agreement is reportedly similar to that of the previous one, except the expiration date which is extended to December 31, 2016. Under the contract, Thai officials will be able to seek direct negotiations with the Philippine government as well as engage in reverse auctions.
Nonetheless, some details of the trade deal will have to depend on the rice market condition and rice yields in both countries at the time of the signing. Prices will also be set based on the rates in the global market.
