Inevitable

Former Sen. Miguel Zubiri has proposed that the Philippines suspend the implementation of the zero tariffs on imported sugar in 2015, just over two years from now. The Philippine sugar industry dread this inevitable year as it would open the gates for the flow of cheap foreign sugar that our own sugar will be unable to compete in the wholesale and retail market.

Sugar in other countries is too cheap even now that the smugglers would take the risk even if their goods are confiscated. They can write off the loss because they can smuggle again and recover.

Of course, the Philippine customs has the notoriety in this regard even when their boss, PNoy has appointed an ostensibly honest man in the helm of the corruption-ridden agency. Some foreign companies are leaving the country because under the watch of Commissioner Raff Biazon, the Bureau of Customs has become more and much more corrupt than during the time of Gloria Arroyo. Their demands for under-the-table bribe have become too expensive to recover.

And to think that the PNoy administration is supposed to be honest and stand by the policy of matuwid na daan – the straight path. Someone has ridiculed this policy saying, matuwad na daan. Don’t ask me what it means in English, just ask an Ilonggo and you will get the drift of what people think of the straight path that is slowly but surely being shown to be just another empty slogan.

Zubiri is known to be an active supporter of the sugar industry and always take time to speak for its behalf. The industry leaders certainly loved to hear what he had to say.

But at closer look his statement was clearly political. His call for the suspension of the implementation of the gradual reduction of the tariff on imported sugar is good to hear, but is far from reality and creates a sense of false hope. He knows and people know (but love to hear him just the same) that the Philippines cannot unilaterally suspend the international agreement or will it take a simple resolution either by our Congress or action by the President to get this agreement suspended.

The other countries, in fact, want this treaty to be enforced according to the timetable agreed upon because it serves their national interest and they had taken steps to prepare for this inevitable moment.

On the other hand, we took our sweet time, our national leaders playing the game so common to Filipinos – wait for the last moment.

The problem is that other countries are not similarly cultured and they took immediate steps to prepare for the inevitable. Thailand which lagged behind us by several years in 1980 speeded up their upgrading program while we danced to the tune of the profitable US market as if the Americans will always remember our loyalty to them during World War II and continue to absorb a high price when the market has half the cost that their consumers pay.

Historical events show that in the long term the American government will yield to domestic demand for lower-priced sugar and not subsidize other countries.

But we delude ourselves thinking, perhaps like Zubiri that we can stay the hand of time by suspending the implementation.

The proposed measure of Rep. Albee Benitez is long overdue, but even this takes time to get the industry to act decisively. The processes followed by the industry do not have the immediacy that so grave a measure demands.

The former leaders of the sugar industry also did not act immediately since 1980. At least when the present Sugar Regulatory Administration under Regina Martin came into power, it took action on the inevitable loss of our tariff protective wall but it also had to tread slowly and its initial plans had to undergo agonizing changes to resolve the conflicting interests of the various sectors of the industry.

Late, but at least concrete steps have been taken by Benitez and Martin. There is too much conflict of interests in the industry but we are seeing some hope in the Benitez bill and the SRA plans.

The Lower House has acted on the Benitez bill and the Senate will tackle the measure in a few weeks, but unless, as I have written ad infinitum, the industry leaders submit to the greater good and the government appreciates sincerely the role of the industry in national development, the Benitez bill can gather moss while the inevitable comes closer.

The Benitez bill has taken center stage over that of SRA but there are some areas that need to be thought out considering the realities in the industry and the rapidly ticking clock to the inevitable. Earlier studies on them are aplenty. Sometimes haste makes waste although we are already late.*

back to top