Philippines keeps US sugar quota, climbs to second-largest
The Philippines has secured a 145,235 MTRV raw sugar export quota to the U.S. for FY2027, retaining the second-largest allocation under the U.S. tariff-rate quota system. The higher-value quota is expected to support sugar exports, ease domestic stocks, and help stabilize local sugar prices.
The Philippines has secured an export quota of 145,235 metric tons raw value (MTRV) of raw cane sugar at a lower tariff to the United States (US) for fiscal year (FY) 2027, maintaining the same allocation for the fourth consecutive year.
In a July 23 notice, the Office of the US Trade Representative (USTR) said the Philippines received the second-largest allocation for the upcoming FY, which runs from Oct. 1, 2026, through Sept. 30, 2027.
The Philippines now holds the second-largest allocation after the Dominican Republic, which received 189,343 MTRV. The country previously ranked third, behind Brazil, whose allocation was reduced from 155,993 MTRV to 100,000 MTRV.
The country has been allowed to export 145,235 MTRV of raw cane sugar under the tariff-rate quota (TRQ) system since FY 2024.
Implemented by the USTR, the TRQ allows countries to export specified quantities of a product to the US at relatively low tariff rates.
The USTR allocates a specific volume to each exporting country based on its historical shipments to the US and consultations with other quota-holding countries.
The Philippines earlier delayed its decision to fill its quota allocation for the current FY 2026, prompting the reduction of its quota to 100,000 MTRV from 145,235 MTRV.
The Department of Agriculture (DA) has since approved the export of 100,000 metric tons (MT) of raw sugar to the US to reduce domestic stocks following excess production last year.
Agriculture Secretary Francisco Tiu Laurel said shipping out some of the domestic output will help ease the downward pressure on sugar prices, especially since prices under the TRQ are more lucrative.
At present, millsite prices of raw sugar declined by 16 percent to around ₱2,239 per 50-kilogram bag (LKg) in June from ₱2,680 per LKg in the same month last year, according to the Sugar Regulatory Administration (SRA).
SRA data also showed that the Philippines had already exported 98,578 MT of raw cane sugar to the US as of July 5. During crop years 2023-2024 and 2024-2025, the country’s exports reached 24,179 MT and 66,085 MT, respectively.
As of July 23, the USTR had already earmarked 1.06 million MTRV for the 39 participating countries under the TRQ system. It plans to allocate the remaining 55,993 MTRV before Oct. 1.
“The allocations of the raw cane sugar WTO [World Trade Organization] TRQ to countries that are net importers of sugar are conditioned on receipt of the appropriate verifications of origin,” the USTR said.
“Certificates for quota eligibility must accompany imports from any country for which an allocation has been provided,” it added.
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Source : Manila Bulletin
