The Office of the US Trade Representative (USTR) has cut the allocation of raw sugar from the Philippines for export to the United States at a lower duty rate for fiscal year 2025.
The Philippines was allocated only 145,235 metric tons (MT), the third biggest after the Dominican Republic’s 189,343 MT and Brazil’s 155,993 MT.
The USTR fiscal year 2025 runs from 1 October 2024 through 5 September 2025.
Under the current fiscal year, the Philippines is allowed to export 25,300 MT more raw sugar to the US on top of its allocation of 145,235 MT under the TRQ, or a total 170,535 MT.
Put another way, the US has denied the Philippines the opportunity to export next year the same volume of raw sugar it has allowed to ship this year.
Historically, the Philippines ships sugar to the US at specified quantities at a relatively low tariff. Imports of the product above a predetermined threshold, however, are subject to a higher tariff.
The sugar quota allocated to the Philippines each year is among the few given a preferential or premium rate by the US.
As this develops, the Sugar Regulatory Administration (SRA) issued Sugar Order 3 dated 19 July 2024 detailing plans for meeting the sugar 25,300 MT of raw sugar under the TRQ that the Philippines failed to meet the past three years.
SRA Administrator Pablo Azcona has said 20 exporters have signified interest to meet the required volume of raw sugar shipped to the US.
The Philippines last shipped 112,008 MT of raw sugar to the US during crop year 2020-2021.
