SRA seeks cut in Japan sugar tariff

MANILA, Philippines - The Sugar Regulatory Administration (SRA) is pressing for the reduction of tariff on Philippine sugar exports to Japan intence with the review of the free trade agreement between the two countries.

Both countries are currently reviewing the Philippines-Japan Economic Partnership Agreement (PJEPA) in an effort to renegotiate commitments made under the trade pact. 

The Philippines is pushing for a regular sugar quota of 150,000 to 200,000 metric tons and a reduction of tariff to zero.

“We are also asking for higher premium for the sugar that will be shipped to Japan,” said  SRA manager for planning and policy Rosemarie Gumera.

The proposed sugar quota allocation would be bigger than the regular quota given by the United States.

The country has a regular US quota of 138,827 MT for crop year 2012 to 2013.

The Philippines is one of the few countries given an annual allocation of sugar export to the US market.

Manila also exports sugar to the world market.

Gumera said the SRA is yet to discuss their appeal with the Department of Trade and Industry (DTI), the lead negotiator for the Philippine panel.

“We want agricultural issues, particularly the sugar quota allocation, to be the focal point of the negotiation. The discussions are now ongoing,” she said.

For crop year 2012-2013, the Philippines expects sugar production to reach 2.3 to 2.4 million metric tons, up five percent from the total production of 2.243 million MT in the crop year ending August 2012.

Of the total production, SRA has allocated 10 percent to the US quota sugar, 82 percent to the domestic sugar, and eight percent to the world market sugar.

With the allocation, the country will be able to meet the regular US quota of 138,827 MT, as well as the buffer stock for possible additional US quota of around 61,993 MT; around 2.03 million MT of domestic demand (including buffer stocks) and around 247,000 MT for the world market.

Agriculture undersecretary Segfredo Serrano, who attended a recent review of the JPEPA, said earlier that they are demanding from Japan at least 200,000 MT of regular sugar allocation to the Philippines.