RP seeks sugar inclusion in AFTA's highly sensitive list

President Arroyo has directed the Department of Trade and Industry to notify the ASEAN Free Trade Area (AFTA) Council that the Philippine government will seek the transfer of raw and refined sugar from the sensitive to the highly sensitive list of the AFTA common effective preferential tariff (CEPT) scheme.

The President’s directive, issued at following Wednesday’s Cabinet meeting, aims to retain sugar tariffs at 38 percent for imports from within the ASEAN region for the next three to five years at the least.

The issue of the transfer of raw and refined sugar to the highly sensitive list was on the agenda of this week’s Cabinet meeting. Agriculture Secretary Arthur Yap informed the President and the rest of the Cabinet members that the sugar industry, supported by the Sugar Regulatory Administration, is seeking a freeze on existing tariff rates.

 After hearing the merits of the industry’s request, the President directed Trade and Industry Secretary Peter Favila to send the notification to the AFTA Council.

After the Sept. 25 hearing of the Tariff Commission where sugar planters from Batangas and Tarlac and workers attended to plead for the retention of sugar tariffs at 38 percent, the issue was placed on the agenda of the technical subcommittee of the tariff and related matters (TRM) meeting last Oct. 2. In the meeting, the industry presented its justifications for the transfer to the highly sensitive list and retention of tariffs, particularly the initiatives for diversification into ethanol and power co-generation and presence of subsidies for sugar production in other countries.   — Mary Ann Reyes