THE PHILIPPINES IS HOPING THE United States will import more raw sugar, citing indications of rising demand through high prices that are seen to persist for two years.

Sugar Regulatory Administration (SRA) Administrator Rafael L. Coscolluela told reporters on the sidelines of the Sugar Industry Stakeholders Forum on 2010 Tariff Reduction that traders were anticipating that the U.S. might add about 40,000 tons to 100,000 tons to the Philippine sugar export quota.

In the world market, sugar prices started to spike in May 2009 and hit a 28-year high of 25.43 US cents per pound in on Sept. 30.

Coscolluela said industry stakeholders should take advantage of the prevailing good prices to boost their competitiveness in preparation for an eventual breakdown in trade barriers for agricultural products.

The Philippines is still working on the postponement of the imposition of lower tariffs on sugar and rice under the Asean Free Trade Area-Common Effective Preferential Treatment (Afta-CEPT), Agriculture Secretary Arthur C. Yap said earlier.

Many farm products traded among Asean members will have zero tariffs once the Afta-CEPT is fully in place starting Jan. 1, 2010.

Yap is hoping for a concession on sugar but could not say whether there was a chance for rice.

The Philippines had submitted a formal letter of intent for re-negotiation with the Afta signatories.

If approved, the Philippines might not have to bring down sugar import tariffs to five percent by January 2010 and to zero later, Coscolluela said.

However, Thailand, the Philippines’ key trading partner in Afta for sugar, has yet to decide on the proposal.

Duty on sugar is currently at 38 percent.

For rice, the Philippines is hoping to keep the tariff at 40 percent until 2015, Yap said.

The Afta-CEPT pact was inked in 1992. Until now, stakeholders in the farm sector say they remain unprepared to compete in the region.