US grants Phl additional sugar allocation

MANILA, Philippines - The United States has granted the Philippines an additional sugar allocation of 18, 824 metric tons, the Sugar Regulatory Administration said yesterday. According to the SRA, the Office of the United States Trade Representative (USTR) has granted an additional Tariff Rate Quota (TRQ) for raw sugar equivalent of 19,648 MTRV which is over and above the 60,000 MTRV additional allocation announced in April 2011.

This was approved, according to the USTR “due to the persistent lobbying efforts of the Philippine sugar industry and SRA with the USTR and USDA.”

The United States Agriculture Department (USDA) announced last month country-specific allocations for an additional 108,862 metric tons of the sweetener for fiscal year 2011 (ending Sept. 30).

The Philippines was not included in that initial allocation.

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

Under the TRQ system, selected countries are allowed to export specified quantities of a product to the United States at a relatively low tariff, all imports of the product above that quantity are subject to a higher tariff.

The exclusion was promptly noted by the SRA and a request for additional allocation was immediately made to the Office of the USTR.

SRA Administrator Ma. Regina Bautista-Martin had argued that 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 additional sugar allocation was finally announced on July 11.

The Philippine is targeting the US market to sell its excess sugar production from the current crop year as domestic demand for sugar has dropped.

Martin said that disposing the excess sugar production this crop year as early as possible will stabilize prices in the domestic market.