For the first time, six sugar-producing countries in the region, including the Philippines, have formed a sugar alliance to boost trade and exchange information to increase production.
Regina Martin, administrator of the Sugar Regulatory Administration (SRA), said the goal of the alliance is "to foster trade among ourselves," and the Philippines' interest is to improve and further hasten modernization and consolidation and productivity of the sugarcane industry.
Jesus Barrera, deputy director for legal affairs of the Philippines Sugar Millers Association, described the alliance as "a private sector initiative" where membership does not bind countries to export produce. "It's entirely an avenue for sugar producers to interact and exchange information and help each other achieve goals of economic integration.
Participants in the ASEAN sugar alliance, signed by the countries on July 15, not only include government officials but also sugar millers, traders and companies from the region's top exporter Thailand, the region's top importer Indonesia, as well as Cambodia, Myanmar and Vietnam.
Through information exchange, the alliance aims to ultimately strengthen relations among sugar industries, encouraging research and development, technology transfer and trade.
The Philippine Sugar Miller Association said the information traders will be getting from other member countries will help improve production and increase the potential of exporting to other countries, since Philippine sugar exports have been on a decline because of decreasing volume in production.
"Previous to this year we have been exporting small volumes to the world market. By increasing production we can increase the volume of sugar we're exporting. It's an opportunity for us to tap markets in other countries. In the process of engaging other producers, we see what are available opportunities in the market," Barrera said.
The alliance is also expected to help the government curb sugar smuggling.
SRA's Martin explained how the alliance members work: "they would let us know if they had exported any amount of sugar to the Philippines then we'd be alerted and if we haven't imported sugar, how was it able to get in? Then it will be easy for us to monitor because they are very cooperative. That's one advantage if we have good relations."
Local producers are facing stiffer competition from peers in the region as the ASEAN Free Trade Agreement brings down tariff walls, and this alliance may just be the sweet solution the sugar industry is looking for.
Souce : http://www.msn.com
Key words : Vietnam, and 5 other ASEAN sugar producers, form alliance.
