NEWSFLASH

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TRADE SEC WARNS US RE SUGAR QUOTA

Manila, April 20, 1998 - Philippine Trade Secretary Cesar Bautista said he has warned the US in its commitment to comply with quota allocations for its sugar imports fearing that the North Atlantic Free Trade Agreement (NAFTA) would induce the increase in quota allocations for Mexico, a NAFTA signatory.

Bautista said he has asked the US Trade Department through Rep Charlene Barsheksky to honor the US obligation with the World Trade Organization (WTO) to abide by its historial,, non-discriminatory basis of awarding sugar quota to sugar-producing countries.

Under the NAFTA formula, Mexico can export duty-free to the US up to its current quota of 25,000 tons in their first 6 years. If it becomes a net surplus producer it can ship up to 150,000 tons from the 7th to 15th year.

The Philippines is the third major supplier of raw sugar to the US with quota allocation of 151,015 metric tons for the year 1997-1998. The first and second are the Dominican Republic and Brazil.

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