MANILA – As the Philippines and the United Arab Emirates (UAE) advance their discussions on the Comprehensive Economic Partnership Agreement (CEPA), key stakeholders in the Philippine sugar and glass sectors have voiced apprehension regarding the potential impacts of the trade deal on local industries.
According to Philippines News Agency, Director of the Department of Trade and Industry (DTI) – Export Marketing Bureau, during a public consultation held at the Tariff Commission on August 30, the UAE has expressed interest in the Philippine markets for sugar and glass products. The Philippine negotiating team is considering offering zero tariffs by 2025 on specific products that are either not locally produced or are produced but not in sufficient quantity. This includes various sugars and sugar-related products, as well as certain glassware items.
During the consultation, Cocoy Barrera, executive director of the Philippine Sugar Millers Association, requested that both raw and refined sugar be excluded from the CEPA. He highlighted the capabilities of the UAE, which hosts some of the world’s largest sugar refineries, to refine imported raw sugar and export it globally, potentially impacting the Philippine market in the future. “They can export sugar refined to the Philippines,” Barrera explained, emphasizing the need for policy alignment, particularly as the Philippine government invests in local sugar industry development.
Similarly, concerns were raised by the Glass Manufacturers Association of the Philippines, Inc. (GMAPI). Associate member Anthony Cabrera expressed worries about UAE glass imports overwhelming the local market. These imports primarily include glass containers used by the beverage, liquor, and pharmaceutical industries. Rommel Dino, a GMAPI member and business manager at San Miguel Yamamura Packaging Corp., supported these concerns, noting a significant increase in glass product imports from the UAE, affecting local manufacturers.
The stakeholders have until September 4 to submit their position papers to the DTI. Undersecretary Allan Gepty mentioned that the third round of negotiations for the PH-UAE CEPA is scheduled for September 16 to 18, with both nations aiming to finalize talks this year, marking the 50th anniversary of diplomatic relations between the Philippines and the UAE.