The recent increase in sugar tariffs imposed by the United States is not a cause for immediate concern, according to Pablo Luis Azcona, Administrator of the Sugar Regulatory Administration (SRA). Speaking on Sunday, Azcona said the new 18 percent tariff—up from the previous 10 percent—is expected to be shouldered by US importers, not Philippine exporters, reported Digicast Negros.
Azcona clarified that the updated tariff is a reciprocal rate of 18 percent, not 17 percent as earlier reported. He cited information from the United States Department of Agriculture (USDA) website indicating that the responsibility for paying the tariff lies with the US-based buyers.
“So far, the US importers have not informed our exporters that they will be passing on the cost of the tariff to them,” Azcona noted. He added that he is still awaiting a response from Michael Ward, agricultural counselor at the US Embassy’s Office of Agricultural Affairs, regarding a letter sent to clarify the situation.
The announcement comes after concerns were raised by Philippine sugar exporters about the possible impact of the increased tariff on their shipments. The Philippines holds a 143,000 metric ton quota in the US sugar market and has already allocated 66,235 metric tons of raw sugar for export for the 2024-2025 crop year.
Azcona said the first half of the allocation is scheduled for shipment in May, with the second half to follow in June. He also noted that the current contracts between Philippine exporters and US buyers do not include any provision requiring the exporters to pay for the newly increased tariffs.
National Federation of Sugarcane Planters president Enrique Rojas and Confederation of Sugar Producers Association head Aurelio Gerardo Valderrama Jr. both chose to withhold comments until official clarification is received.
“Before we express any reaction, it is best to wait for the US reply to SRA’s letter seeking clarification on the coverage of Philippine sugar exports under this new US directive,” Rojas said.
“We are still waiting for the DA and SRA advice on this matter,” Valderrama added.
