‘US tariff will not affect Negros economy’

Governor Eugenio Jose Lacson does not believe that the new tariffs slapped by US President Donald Trump will have a major effect on the economy of Negros Occidental.

“Although we have a sugar quota, it’s not and in most cases our sugar production is not even enough for local consumption,” Lacson pointed out.

The governor said that the province “is not an export- producing province.” The Philippines exports corn and soy beans to the US, he added.

Lacson also said that the country has lower tariff compared to neighbors Indonesia and Thailand.

“This may be because of the good relationship of the Philippines with the US,” he added.

SRA

In a separate statement, Pablo Luis Azcona, administrator of the Sugar Regulatory Administration said there is no cause for alarm for now with the new United States’ imposition of an 18 percent tariff.

Azcona said the tariff was previously 10 percent and now the reciprocal tariff is set at 18 percent, not 17 percent.

“The explanation in the United States Department of Agriculture website is that the tariffs will be shouldered by the US importer,” he said.
The US buyers have not informed the Philippine exporters that they are passing on the payment of the tariff to them, Azcona said.

Azcona said he is still waiting for the reply of Michael Ward, agricultural counselor of the Office of the Agricultural Affairs at the Embassy of the United States, to his letter inquiring about the increased tariff.

Philippine sugar exporters last week aired their alarm over the latest tariff imposition.

The Philippines that has a 143,000-metric ton share in the US Sugar Quota has allocated 66,235 MT of raw sugar for export to the United States for crop year 2024-2025, Azcona said.

The Philippines is shipping out the first half of the allocation in May and the second half in June, he said.

However, Negros Occidental Rep. Emilio Bernardino Yulo (5th district) said that Philippine exports to the United States are being expected to have a big and drastic effect on the sugar industry.

Yulo used to be a representative of the sugar planters to the Sugar Regulatory Administration board.

He said that the Philippines is exporting raw sugar to the US, with zero tariff.

But, the imposition of 17 percent tariff,
the costing for traders will increase by 17 percent, stressing that “it will no longer be profitable to the exporters,” he pointed out

Echoing sentiments of Yulo, Manuel Lamata, president of the United Sugar Producers Federation of the Philippines (UNIFED), said that 17 percent is too much for the traders.

If it is no longer profitable, Lamata said they are looking at selling sugar to the world market, which they have an access.* (EYA)