Philippines : Industry groups urge government to exclude sugar from FTA talks with Chile
Philippine sugar industry groups urged negotiators to exclude sugar from the Philippines-Chile FTA, citing no export interest, high freight costs, and Chile’s non-tariff barriers. PSMA opposed its inclusion entirely, while CONFED supported exclusion from market access but backed cooperation on R\&D for variety exchange. DTI pledged to pursue favorable concessions.
MANILA, Philippines — Industry groups want sugar to be excluded from the negotiations for a free trade agreement (FTA) with Chile, citing lack of export interest and the presence of non-tariff measures in the South American country.
During the Tariff Commission’s public consultation for the Philippines-Chile Comprehensive Economic Partnership Agreement (CEPA), the Philippine Sugar Millers Association (PSMA) called on the government to exclude sugar from the FTA talks.
Meanwhile, the Confederation of Sugar Producers Association (CONFED) pushed for exclusion in terms of market access discussions, but to include sugar in research and development (R&D) cooperation.
“It is the position of the Philippine Sugar Millers to request DTI (Department of Trade and Industry), Tariff Commission and our negotiators in the Department of Agriculture to exclude sugar from the FTA,” the PSMA said.
The group said it does not have any export interest in Chile, citing the country’s distance from the Philippines.
“The freight cost would be too high to make our sugar competitive there even with the CEPA,” the PSMA said.
It also cited the non-tariff measures for sugar and other agricultural commodities being adopted by Chile.
While the CONFED also wants sugar to be excluded from the FTA talks in terms of market access, Rosemarie Gumera of the CONFED said the technical cooperation for agriculture R&D being discussed as part of the FTA may be beneficial for the industry.
“Hopefully, as part of the agriculture sector, we would be part of the R&D of technology cooperation with Chile. So that’s very important for us, especially for variety exchange,” she said.
DTI Bureau of International Trade Relations director Lyn Aquia said that the government is aiming to secure the best possible concessions for Philippine products currently being exported to Chile.
She said the government is also looking at opportunities for the Philippines to supply products that Chile imports from other countries or in small quantities from Philippine exporters.
“We will request to secure lower tariffs and fewer restrictions on essential food products in Chile and our partner markets to ensure stable, affordable and diverse supplies for our consumers,” she said.
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Source : Philstar Global
