China tariff on carageenan only 8%, not 35% – BFAR

Bureau of Fisheries and Aquatic Resources (BFAR) Director Malcolm Sarmiento over the weekend brushed aside the complaint of the Seaweed Industry Association of the Philippines (SIAP) regarding the high tariff barrier being imposed by China on Philippine and Indonesian carageenan exports.

SIAP claims that China is slapping a 35-percent tariff on Philippines and Indonesian carageenan exports.

The SIAP has already asked the Department of Agriculture (DA) to formally file a complaint with the World Trade Organization (WTO) and the Association of South-East Asian Nations (ASEAN) against China for imposing a 35-percent tariff on carageenan.

Sarmiento, in a talk with reporters, disputed the SIAP’s claim.

According to Sarmiento, China’s tariff on carageenan is only eight per cent.

The SIAP, Sarmiento said, may have been confused and is lumping all taxes and value-added taxes together.

China, Sarmiento said, being a member of the WTO and also a party to a Free Trade Agreement (FTA) with the ASEAN (Association of South East Asian Nations) cannot impose such a high tariff.

The SIAP board just this April 10, had approved a petition wherein it pointed out that Filipino marginal fishermen have been culturing the eucheuma seaweed since 1972.

The eucheuma seaweed is the raw material from which the additive carageenan is extracted from.

Carageenan is a thickening agent used in various food and cosmetic applications.

Philippine seaweed and carageenan exports, the SIAP pointed out, brings in around $163 million to the economy and provides employment to almost 20,000 skilled and non-skilled workers.