Philippine Trading Firms Urge Retention of Sugar and Petrochemical Tariffs in UAE FTA
Two major Philippine trading firms have called on the government to maintain tax rates on sugar and petrochemicals under the planned free trade agreement (FTA) with the United Arab Emirates (UAE), citing concerns over the negative impact on local industries, INQUIRER.NET reported. .
During a public consultation held by the Tariff Commission last Friday, the Philippine Sugar Mills Association (PSMA) requested that raw and refined sugar, classified under Chapter 17.01 of the Commodity Specifications, be excluded from the Comprehensive Economic Partnership Agreement.
“Although the UAE does not have an agricultural sector, it is home to some of the world’s largest sugar refineries such as Al Khaleej and Emirates,” PSMA’s executive director Jesus “Cocoy” Barrera said during the hearing. “Their process involves importing raw sugar and exporting refined sugar to the global market. Although we are not currently part of their traditional export market, the dynamics may change in the future as they seek additional markets, especially with the heavy investments the UAE government has made in its sugar refining sector.
Barrera also mentioned that parliamentarians are presently examining government assistance programs aimed at boosting sugar sector output. “The Sugar Trade Industry Development Act is an inappropriate use of public funds for the government’s heavy investment in this industry’s growth.
Likewise, at the hearing, the Petrochemical Manufacturers Association of the Philippines, Inc. (APMP) expressed concerns on the possible effects of the Free Trade Agreement (FTA) on the domestic petrochemical sector.