US 18% tariff no cause for alarm for PH sugar industry for now: SRA
The U.S. raised its sugar import tariff from 10% to 18%, but the Philippine Sugar Regulatory Administration says there’s no cause for alarm yet. Exporters are waiting on a U.S. embassy reply for clarification. For now, contracts don’t indicate Philippine exporters will bear the cost, and shipments remain on track for May and June.
The United States imposition of an 18 percent tariff on sugar is no cause for alarm for now, Administrator Pablo Luis Azcona of the Sugar Regulatory Administration said on Sunday, April 6.
The tariff was previously 10 percent and now the reciprocal tariff is set at 18 percent not 17 percent, he said.
The explanation in the United States Department of Agriculture website is that the tariffs will be shouldered by the US importer, he said.
The US buyers have not informed the Philippine exporters that they are passing on the payment of the tariff to them, Azcona said.
Azcona said he is still waiting for the reply of Michael Ward, agricultural counselor of the Office of the Agricultural Affairs at the Embassy of the United States, to his letter inquiring about the increased tariff.
Philippine sugar exporters last week aired their alarm over the latest tariff imposition.
The Philippines that has a 143,000-metric ton share in the US Sugar Quota has allocated 66,235 MT of raw sugar for export to the United States for crop year 2024-2025, Azcona said.
The Philippines is shipping out the first half of the allocation in May and second half in June, he said.
The exporters contracts with the US importers do not state that they will pay for the tariff, Azcona said.
National Federation of Sugarcane Planters president Enrique Rojas and Confederation of Sugar Producers Association head Aurelio Gerardo Valderrama Jr. said on Sunday that they are withholding their comments on the tariff until Azcona gets a reply from Ward.
“Before we express any reaction, it is best to wait for the US reply to SRA’s letter seeking clarification on the coverage of Philippine sugar exports under this new US directive,” Rojas said.
“We are still waiting for the DA and SRA advice on this matter,” Valderrama said.*
To Read more about Sugar Industry continue reading Agriinsite.com
Source : Digicast Negros
