PH seeks zero tariff on sugar in Japan

The Philippines wants Japan to trim duties imposed on Philippine sugar as the two countries review the Philippines-Japan Economic Partnership Agreement (PJEPA).

Noting that Tokyo has failed to reciprocate a reduction in tariffs on farm products under the free-trade agreement, the Department of Agriculture (DA) said the Philippine panel would push for a reduction of in sugar tariff to zero.

There is also a proposal to work on a regular sugar quota of 150,000 to 200,000 metric tons.

“They have previously committed to allow our locally produced sugar to enter at a lower tariff. We should not waste this opportunity,” Agriculture Undersecretary Segfredo Serrano told reporters.

Japan previously denied the Philippines’ appeal to lower the tariff on sugar, saying this would impact the northeast Asian country’s own sugar producers.

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

If Manila’s proposed sugar quota allocation is approved, the volume would be bigger than what the Philippines got from the United States.

Manila has a regular US quota of 138,827 MT for crop year 2012 to 2013. The Philippines also exports its sweetener to the world market.

The Philippines has been a very consistent and reliable sugar exporter to the US. It is one of the select countries given an annual allocation of sugar export to the US market at a premium.

“Once (the Japan quota is) approved, we will be able to ship more sugar to other markets so that we will not rely on the traditional sugar quota allocation from the US,” Gumera said.

Serrano, however, said the country had already dropped the CSQ negotiations since an unlimited export volume at zero tariff would be more competitive for local sugar producers.

“Japan has little over 300 hectares of sugar production areas, which makes it more desirable for our exporters. Why would we limit the volume when we can do better at lower tariff,” he said.

Aside from sugar, the Philippine panel is asking its Japanese counterpart to approve 3,000 tariff lines at zero tariff—mainly agricultural and marine products for which the Philippines has competitive advantage.