INDUSTRY GROUPS have put forward their proposals for the tariff regimes that will govern agricultural products like sugar, milk powder, beef and pork, under the European Union (EU)-Philippines Free Trade Agreement (FTA), the Tariff Commission said.
The industry proposals were released at a Tariff Commission hearing ahead of the planned exchange of market access offers between the Philippines and the EU, who are expected to wrap up negotiations next year.
The two sides are expected to exchange market access offers soon.
“Our recommendation would obviously be exclusion of sugar from the FTA for now, but then we will be studying the possibility if we could have a specific tariff line for muscovado sugar,” Rosemarie S. Gumera, representative of the Confederation of Sugar Producers, said on Tuesday.
Muscovado is an unrefined form of sugar that retains its molasses content.
Ms. Gumera, who is also a former official with the Sugar Regulatory Administration, said the market for muscovado is different from the market for raw and refined sugar.
“The EU is one of our main markets for sugar. Japan is number one. But our concern is mainly for muscovado sugar because most of our small planters are dependent on the production of muscovado,” she added.
Jesus L. Barrera, executive director of Philippine Sugar Millers’ Association, Inc., said the exclusion of raw and refined sugar from the FTA is based on the EU’s status as mainly a producer of beet sugar.
“There are only two countries in the EU that produce sugar from cane, which are Portugal and France. So even though the EU reduces the tariff on sugar, since raw sugar from cane is produced only in two countries, you have to have arrangements with certain companies in France and Portugal,” he said.
“They’re the only ones who can process your raw exports into refined sugar,” he said.
Teodoro Alexander T. Po, vice chairman, president, and chief executive officer of Century Pacific Food, Inc., said he is hoping to see the Philippines offer duty-free access for European milk powders, beef, pork, and beef offal, and for tin plates.
He said these products are produced in small quantities in the Philippines and are used by domestic manufacturers for both their local exported products.
Imelda J. Madarang, chief executive officer of Fisherfarms, Inc., said the industry wants the FTA to help exporters address non-tariff barriers, noting the EU’s rules governing packaging and ingredients, among others.
“We’re really happy about the tariff, but it is actually the non-tariff measures that we are encountering,” she said.
Lattice Angelique Andriano of the Department of Trade and Industry’s Bureau of International Trade Relations said the fourth round of the negotiations will be held on Oct. 20-24 in Cebu City.
“Chapter leads will continue with text-based negotiations with an aim to clean as many articles as possible, given the timeline [that we are working on],” she said.
“And both sides will aim to exchange market offers for goods, services, investment, and government procurement before the fourth round, if not within this month,” she added.
According to Ms. Andriano, both sides are hoping to fast-track negotiations with the aim of concluding them by mid-2026, or ahead of the expiration of the Generalised Scheme of Preferences Plus in 2027. — Justine Irish D. Tabile
