Press Release
October 22, 2008

ROXAS: PROTECT SUGAR INDUSTRY FOR FOOD, FUEL USE SUPPORTS ENTRY OF SUGAR IN AFTA HIGHLY SENSITIVE LIST

Liberal President Senator Mar Roxas today declared his support for the Department of Trade and Industry's moves to place sugar in the highly sensitive list of the Asean Free Trade Area-Common Effective Preferential Tariff (AFTA-CEPT), to protect jobs and to promote growth of the domestic sugar industry.

"Sugar remains one of our most crucial industries, providing jobs for thousands, particularly in Negros Occidental and other Visayan provinces.. It is imperative that we provide the protection our countrymen need for sustainable livelihoods and incomes," he said.

Placing sugar in the AFTA-CEPT list would allow for the retention of the tariff on raw and refined imported sugar at 38% beyond 2010, when, under the international trade agreement, other products' tariffs will have been eliminated.

The Ilonggo senator noted that the 2007 Biofuels Law mandates a graduated increase of the minimum blend of ethanol, derived from sugar, in petroleum products. By next year, a 5% ethanol blend is required. By 2012, five years after effectivity of the law, a minimum ethanol blend of 10% is required.

"Protecting our sugar industry is essential in ensuring adequate supply of ethanol for our biofuels program, that would help reduce our dependence on imported petroleum," Roxas said.

"Both our food and fuel requirements must be met, and retention of the tariff on sugar imports ensures a long-term domestic supply for long-term government programs," he added.

Roxas said the government must continue to provide support to the sugar industry with the worldwide economic downturn.

"Placing sugar in the highly sensitive list should be the first of other measures that would strengthen our sugar industry. I urge more government support in expanding our sugar plantations to produce what our country needs," he said.

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