Legarda calls for more support to agricultural sector

MANILA, Philippines – Sen. Loren Legarda urged for more government support and “safety nets” for agricultural industries, including sugar, in the light of the free trade agreement among members of the Southeast Asian Nations (ASEAN).

Legarda made the appeal in the light of the signing of the Asean Trade in Goods Agreement (ATIGA) during the 14th ASEAN Ministers’ summit in Thailand, drastically lowering tariffs on agricultural products like rice and sugar in ASEAN trade.

“The industry needs to brace itself for the impact of trade liberalization within the ASEAN,” Legarda said, referring to the agreement. While the objective is to establish a free low of goods in the ASEAN market, Philippine agricultural products like sugar and rice will be placed at a disadvantage in the short run because of their being uncompetitive.”

The Philippines is the world’s biggest rice importer, importing mostly from Vietnam and Thailand, while the Philippine sugar production has been on the decline.

“Economic integration can be two-edged sword. There is hope that our commitments to the ATIGA will (provide the impetus for our industries to align themselves along areas of competitive advantage in the long run. However, the adjustment process in the immediate term is quite worrisome, especially in the light of the impending fiscal crisis and the havoc wrecked on our agriculture by the recent natural disasters,” Legarda said.

Addressing the 39th annual meeting of the Jalasig Sugarcane Planters Association in Passi City, Iloilo, Legarda, chairman of the Senate committee on agriculture and food, warned that unless “we succeed in listing sugar in the highly sensitive list, tariff on imported sugar under AFTA will be slashed from 38 percent to 28 percent in 2010.

“Even if we succeed, the measure will provide only transitory relief. Beyond the short term, our government needs to overcome the utter neglect that had characterized its part performance and provide real safety nets and support mechanisms that will help agriculture become competitive. That is my vision for the sugar industry and for Philippine agriculture as a whole,” she said.