PH to sign banana tariff deal with SKorea – Piñol
THE Philippines and South Korea is set to sign next week a preferential trade agreement with particular emphasis on reducing tariff on bananas, the Department of Agriculture ( DA) said on Friday.
On the sidelines of the International Food Exhibition ( IFEX) Philippines in Pasay City, Agriculture Secretary Emmanuel F. Piñol told reporters that the deal would focus on proposing that reduction, which he would discuss with his South Korean counterpart.
“Right now, we are being slapped by a 30- percent tariff on bananas. We’re asking that this be reduced up to 10 percent,” Piñol said.
That percentage is only “the second option,” he added, saying the country was originally asking for zero tariff.
“We also have to understand that importing countries will also make their own computation on how much they would lose in terms of revenues,” Piñol said.
The Agriculture chief cited Finance Secretary Carlos Dominguez 3rd in saying there was an imbalance in the tariff structure on bananas between Manila and Seoul.
“Secretary Dominguez feels that the setup right now is unfair, because,” for example, South Korean apples, are only slapped with a 5- percent tariff, Piñol said.
The country will also propose in the PTA that it be allowed to export okra, as well as its excess eggs to South Korea, according to him.
“I already had a preliminary discussion about” the excess eggs “with the South Korean ambassador,” the DA chief said.
“I still can’t quantify to volume of eggs we will export. I will have to meet with egg producers,” he added.
The total value the Philippines would earn from the PTA has not been quantified, Piñol said, since the commodities have not been identified.
Last January, Trade Secretary Ramon Lopez said his department had started negotiating with South Korea, Japan, and Australia on lower tariffs and higher volume of banana exports.
Tariffs, however, remain ,high despite existing FTAs under the auspices of the Association of Southeast Asian Nations (Asean).