DA will ask negotiators to seek removal of Japan banana tariff
DAVAO CITY — The Department of Agriculture (DA) said it will pitch Philippine trade negotiators to seek the removal of tariffs on bananas exported to Japan.
Agriculture Undersecretary Emerson U. Palad assured industry leaders in a discussion earlier this month that the DA “fully supports” the industry’s zero-tariff agenda.
“The proposal can be included in the negotiations of the two countries on economic cooperation,” Mr. Palad said in an interview, noting that the initial agreement signed by Japan and the Philippines 10 years ago allows for the review of tariff exemptions.
Mr. Palad was referring to the Japan- Philippines Economic Partnership Agreement, a comprehensive agreement aimed increasing trade and investment opportunities between the two countries. It was signed on Sept. 9, 2006.
At present, tariff rates for Philippine bananas entering the Japanese market range from 8.5% to 18.5%, depending on the season.
The Pilipino Banana Growers and Exporters Association, Inc. ( PBGEA), the industry body representing large-scale growers and exporters, has been lobbying for the elimination of tariff imposed by their biggest market.
PBGEA Executive Director Stephen A. Antig said some Japanese buyers have also been urging them to push the Philippine government for the tariff removal.
Last year, the Philippines exported about 879.852 million metric tons ( MT) of bananas to Japan, higher than the 2014 volume at 859.324 million MT, based on PBGEA data.
“The reduction in tariff will make the country more competitive now that other new countries have started exporting their products [to Japan],” Mr. Antig said, referring to Latin American nations and some within Asia.
The PBGEA official said the tariff removal would lighten the burden of the banana industry as it faces the dry spell brought about by El Niño, continued diseases that have affected small farms, and government regulation and tax policies.
The industry is currently suing to overturn two policies of the Davao City government — one over additional environmental taxes now pending before the Court of Tax Appeals and the other on the legality of the aerial spraying ban, which has been elevated to the Supreme Court.