Inclusion of carrageenan in US GSP list eyed

The Seaweed Industry Association of the Philippines (SIAP) is preparing the groundwork for the inclusion next year of carrageenan in the list of US Generalized System of Preferences (GSP) that would cut the existing five percent tariff on manufactured carrageenan to zero.

SIAP president Benson Dakay said local seaweed exporters are firming up documents required by the Washington-based US Trade Representative Office (USTRO) for specific industries that want to qualify for the GSP.

Dakay said aside from the industry profile, including an assessment on how carrageenan can qualify under the GSP’s local value-added requirements, the SIAP will be emphasizing the economic impact of being eligible for the GSP.

"We have to stress how the petition will further the economic development in the seaweed-producing areas, especially in the Muslim areas, specifically the Zamboanga-Jolo-Basilan, Tawi-tawi corridor," said Dakay.

SIAP was advised by USTRO representatives to hire US-based lobbyists but this costly proposal was turned down by local seaweed manufacturers.

Instead, Dakay said SIAP will be commissioning its old network of lobbyists led by Dr. Harris Bixler who last year successfully thwarted an attempt by Dr. Joanne Tobacman, a researcher at the University of Iowa, Department of Internal Medicine, to come out with a study showing that increased intake of carageenan increased the incidence of breast cancer.

The Philippine government earlier dropped tuna and carrageenan in the GSP list submitted for approval to the USTRO in exchange for the country’s support to the US plan to declare war with Iraq.

Tuna and carrageenan were supposed to be included in the original GSP list submitted to the USTR but the Bureau of International Trade Relations (BITR), an agency attached to the Department of Trade and Industry (DTI) which consolidated all items aspiring to get GSP status said, the submission of requirements for the two products came too late. The deadline was last end-September. The next deadline for new items to be included in the GSP list would be in June 2003.

Sources said however the bigger issue was that USTRO representatives said point blank that getting approval for carrageenan in particular, would be difficult unless pollution charges against US seaweed processor FMC Marine Colloids were dropped.