Phl gets no sugar allocation under US new tariff quota system

MANILA, Philippines – The Philippines has not been given a sugar allocation by the United States under its new tariff rate quota.

The omission was noted by the Sugar Regulatory Administration (SRA) which has asked the Office of the United States Trade Representative (USTR) to rectify the oversight.

SRA Administrator Ma. Regina Bautista-Martin said the Philippines should get priority allocation since the country has been a very consistent and reliable sugar exporter to the US.

“The Philippines is one of the select countries given an annual sugar quota allocation to the US market at a premium. So, we really don’t know why we are not included, but we have already informed them [USTR] and they said that they will find a solution,” Martin said.

The SRA chief is hoping for a new announcement from the US government on July 4.

The Philippines is hoping to sell its excess sugar to the US market as domestic demand for sugar has dropped.

Martin said the excess sugar needs to be disposed of as early as possible so prices in the domestic market will stabilize.

Last week, the United States Dept. of Agriculture (USDA) announced country-specific allocations amounting to 108,862 metric tons for fiscal year 2011 (ending Sept. 30).

The USDA said the in-quota quantity of the tariff-rate quota (TRQ) is in addition to the minimum amount to which the United States is committed under the World Trade Organization (WTO) Uruguay Round Agreements.

A TRQ allows a country to export a specific quantity of a product to the United States at a relatively low tariff. Imports of this product above the specified quantity will be subjected to a higher tariff. –Marianne V. Go (The Philippine Star)