March 25, 2017
ABS-CBN News | https://goo.gl/XjLY8A
Coca-Cola FEMSA has committed to use more local sugar in producing its beverages provided that the government consider the imposition of tariffs against an imported soft-drink ingredient, the agriculture minister said Friday.
President Rodrigo Duterte initially approved an agricultural policy that would impose tariffs on imported high-fructose corn syrup after the local sugar industry suffered losses as beverage companies started using the syrup from China instead of sourcing sugar from local farmers.
"Coca Cola Femsa Philippines paid a call on me (Thursday) to inform me the corporation has decided to spend a few million dollars more just to show to President Rody Duterte that it is willing to help the local sugar farmers," Agriculture Secretary Emmanuel Piñol said in a statement.
Coca-Cola will officially ask Duterte, through the Sugar Regulatory Administration, to give the company six months to be able to purchase equipment that can process raw sugar into syrup, Piñol added.
Prior to its commitment to support local farmers, Coca-Cola took the issue to court, arguing that the SRA cannot regulate the imported corn syrup as it is not considered cane sugar.
Coca-Cola told the court that the new tariff has slowed down production, as about 200 containers of the imported syrup have been held in different ports around the country.
"Coca-Cola executives offered to withdraw the case but I told them to await first the official presidential action on their request for a six-month grace period before withdrawing the case," Piñol said.