Lifting of tariff on imported sugar threatens local industry—Zayco

BACOLOD CITY -- Governor Isidro Zayco said he will raise the appeal of sugar leaders to Finance Secretary Margarito Teves for the retention of the tariff on cheap highly subsidized imported sugar entering the country beyond 2010.

Zayco expressed his support to the call because he foresees the disturbing effect of the plan to Negrense small farmers and agrarian reform beneficiaries when it is imposed by the government.

The move is for the survival of not only Negros sugar industry but the country's sugar industry, giving additional time to diversify and adjust to trade liberalization, he said.

The sugar leaders said the government must act on the double, otherwise the Philippine sugar industry will experience crisis in the years to come that is why there is a need for an immediate concerted lobby.

Board Member Adolfo Mangao earlier authored a resolution requesting the Office of the President to transfer raw and refined sugar from the sensitive to the highly sensitive products list of the Philippines under the ASEAN Free Trade Area – Common Effective Preferential Tariff (AFTA-CEPT).

The record showed, for five consecutive years beginning crop year 2002-2003, the sugar industry has attained surplus production by an average of 171,885 metric tons of raw sugar and in crop year 2007-2008 produced 2.45 million metric tons, the highest output in 25 years.

Zayco said the planned reduction of sugar tariffs on imported sugar under the AFTA-CEPT from the current duty of 38 percent to 28 percent in 2009, and to 0 to 5 percent in 2010.

If sugar from Thailand will enter the Philippine market eventually it would cause danger to the livelihood and employment of 600,000 Filipino workers, the governor said.