By Ronnel Domingo
Inquirer
December 15, 2006

THE Philippines has shipped 50,000 metric tons of raw sugar to the United States as part of the US government’s efforts to stabilize supply in the wake of hurricanes that devastated sugar-producing states, an official said.

The cargo was sent in exchange for 49,971 metric tons of American refined sugar brought in tax-free under a swap program between the two governments, said Maria Victoria Magcase, vice president of state-owned Philippine International Trading Corp. (PITC).

The exchange was made through a memorandum order Malacañang issued Feb. 23, Magcase said. It was done in September, through eight farming companies accredited by the Sugar Regulatory Authority (SRA), she said.

Tasked to facilitate the government’s counter-trade services, PITC earned P10 million from the deal by charging a P10 service fee on each bag of sugar shipped to the United States, Magcase said.

She said domestic supply would not be adversely affected because the exported sugar was replaced with roughly the same volume of imported refined sugar.

The United States has increased Philippine sugar quota by 80,000 metric tons to a total of 216,438 but SRA rules focus on the raw sugar shipments, Magcase said.

Hurricanes Katrina and Rita had hurt reduced American sugar production, prompting an increase in quotas for import sources like the Philippines, which in this case is by way of preferential or above-market rates.

The SRA has said that with a properly implemented swap arrangement, exporters could ship out 200,000 metric tons this year. With INQ7.net