US-bound PH sugar still safe from new tariffs, says regulator
The Sugar Regulatory Administration (SRA) is optimistic that raw sugar exports bound for the United States will not be slapped with higher tariffs upon arrival later this month.
“Our ETA (estimated time of arrival) for raw sugar exports is July 22. Hopefully, it won’t be affected,” SRA Administrator Pablo Luis Azcona said in a Viber message.
Azcona also said the first vessel containing locally produced raw sugar has arrived in the United States.
Exporters shipped two vessels carrying about 33,000 metric tons (MT) each of high-quality raw sugar. This is in fulfillment of the US sugar quota for 2025.
These were originally scheduled to arrive on Aug. 15 to meet the Sept. 30 deadline set by the US government.
However, Azcona earlier said the schedule was adjusted to an earlier date. This is to ensure that the shipments would reach America before the moratorium on US reciprocal tariffs lapses.
The US government last week informed Malacañang that Philippine exports to America will be subject to a 20-percent tariff.
This was higher than the 17-percent import duty that US President Donald Trump announced last April.
The latest rate is the second-lowest in the region, next to Singapore’s at 10 percent. The tariffs will take effect on Aug. 1.
The Philippines’s negotiating team would reconvene before the scheduled trip to Washington this week. This is to initiate the “second stage” of high-level negotiations, seeking to forge a better trade deal with Washington.
“We are not affected by the 20 percent this year. We will see what happens in 2026,” Azcona said. He was asked if the Philippines would be able to meet its export quota from the US in the coming years.
For review
Azcona also said the SRA would need to review the replenishment ratios. This is the volume of refined sugar that can be imported in exchange for raw sugar purchased from local farmers.
He said earlier that under this scheme, eligible traders may export raw sugar to the US at lower prices. To recover their losses, they could import sugar at cheaper prices through the government’s importation program.
The Philippines was given an export quota of 145,235 MT raw value of raw cane sugar for fiscal year 2025, according to the Office of the US Trade Representative.
This covers the period from Oct. 1, 2024 to Sept. 30, 2025.
This Philippines’ quota is the third-highest allocation next to the Dominican Republic and Brazil.
Through this arrangement, several countries such as the Philippines are allowed to supply specified quantities of the product to the US at a relatively low tariff.
Those who participated in the voluntary purchase of locally produced sugar and exported raw sugar to America can import sugar in the first importation round that the SRA recently authorized.
