By JEN BAYLON
Negros Occidental Governor Eugenio Jose Lacson expressed confidence that the recent imposition of a 17 percent tariff on Philippine goods by the United States will not significantly impact the local economy.
“I don’t think it has any major effect on our economy in Negros Occidental,” Lacson said.
The governor’s optimism stems from the province’s limited role in exporting goods to the US, particularly agricultural products, which are not produced in sufficient quantities to meet local demand.
“We’re not really an export-producing province,” Lacson explained.
He also highlighted the relatively favorable tariff rate compared to neighboring countries.
“The good news is, I understand our Asian neighbors were even higher in tariff rates,” the governor said.
Indonesia and Thailand face higher tariff rates of 32 percent and 36 percent, respectively, while Vietnam is subject to a 46 percent tariff.
The US tariff on the Philippines remains among the lowest in Southeast Asia, together with Singapore being charged the baseline 10 percent rate.
This disparity, Lacson noted, reflects the strong relationship between the Philippines and the US.
Despite these national concerns, Lacson said, Negros Occidental’s economy is likely to remain resilient due to its specific economic profile and the strategic diplomatic ties between the Philippines and the US.
Earlier, the United Sugar Producers Federation (Unifed) expressed concerns about the potential “very bad effect” on Negros Occidental’s sugar exports to the US.
“We export raw sugar for refining in America. But with a 17 percent cost increase, it might no longer be profitable for traders to sell sugar to the US,” Unifed President Manuel Lamata said.
“This could make it too costly to continue,” he added.
Lamata clarified that the tariff on certain goods will not affect planters directly but will impact traders and exporters.
Sugar exporters in the country last week aired their alarm over the latest tariff imposition.
The Philippines has already allocated 66,235 metric tons of raw sugar in the US Sugar Quota for export to the US for the crop year 2024-2025, Azcona said.
The country will be shipping out the first half of the allocation in May and the second half in June, he said.
With Negros Occidental contributing significantly to the Philippines’ national sugar supply, any disruption in exports could ripple through local economies and global markets alike./JB, WDJ