Thailand has agreed in principle to the Philippines’ request to delay tariff cuts on rice and sugar and did not raise the issue of compensation, but would only like the Philippines to improve its proposed end tariff rate and end date on rice.

Trade and Industry Secretary Peter B. Favila told this to reporters after meeting with his Thai counterpart at the recently-concluded ASEAN Ministerial Meeting in Bangkok where the Philippines has invoked the Protocol on the Special Arrangement for Sensitive and Highly Sensitive Products, a special ASEAN protocol that would allow flexibility on the country’s tariff liberalization on rice and sugar, which are both sensitive products for both countries.

“Thailand can accommodate sugar but there is having difficulty on rice so I called Agriculture Secretary Art Yap if we could reconsider our formula and we have until end of the month to reply,” Favila said.

Yap promised to do a consultation to come up with a new formula that would be acceptable to the Thais.

Favila has refused to divulge the proposed formula that submitted to Bangkok but said the Agriculture Department has come up with a formula that would address the calls of farmers for more protection against the influx of rice when ASEAN starts zero tariff regime by January next year and extend the protection beyond 2010.

Farmer groups have earlier said they want tariff cover for rice extended by five more years.

Rice, which has tariffs of 40 percent, is the only product in the country’s highly sensitive list.

Tariff lines that are in the highly sensitive list will be accorded tariff cover beyond 2010 when other tariff lines in the region average at zero to 5 percent.

“The formula contains both end date and end rate. We are hoping to come up with a new formula next week. I think it can be worked out and Art is pretty confident,” Favila added.