Government urged to retain current tariff rates for sugar under planned FTA between Philippines and UAE
Two major Philippine trade organizations have urged the government to maintain tariff rates on sugar and petrochemical products in the planned free trade agreement (FTA) with the United Arab Emirates (UAE). During a public consultation held by the Tariff Commission, the Philippine Sugar Millers Association (PSMA) requested the exclusion of raw and refined sugar from the Comprehensive Economic Partnership Agreement (CEPA) with the UAE, citing concerns over competition from UAE’s large sugar refineries.
Two major Philippine trade organizations have called on the government to retain tariff rates on sugar and petrochemical products under planned free trade agreement (FTA) with the United Arab Emirates (UAE), citing concerns about the negative impact on local industries, reports INQUIRER.NET.
During a public consultation held by the Tariff Commission last Friday, the Philippine Sugar Millers Association (PSMA) requested that raw and refined sugar, categorized under Commodity Details Chapter 17.01, be excluded from the Comprehensive Economic Partnership Agreement (CEPA) with the UAE.
“Although the UAE does not have an agricultural sector, it is home to some of the world’s largest sugar refineries, such as Al Khaleej and Emirates,” said Jesus “Cocoy” Barrera, executive director of the PSMA, during the hearing. “Their process involves importing raw sugar and exporting refined sugar to the global market. While we are not currently part of their traditional export market, the dynamics could change in the future as they seek additional markets, especially with the heavy investments the UAE government has made in its sugar refining sector.”
Barrera also highlighted that lawmakers are currently reviewing the government’s support for the sugar industry to enhance its productivity. “It would be incongruent that the government is spending so much through the Sugar Exchange Industry Development Act for the development of this industry while we are opening it to potential importation from another source,” he added.
Similarly, the Association of Petrochemical Manufacturers of the Philippines, Inc. (APMP) voiced concerns during the hearing about the potential impact of the FTA on the local petrochemical industry.
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