Japan trip yields $1.8-B deals

A total of 12 business agreements worth $1.8 billion have been signed between the Philippines and Japan during President Duterte’s state visit, Trade Secretary Ramon Lopez said yesterday.

The deals consist of seven letters of intent (LOI) and five memoranda of understanding (MOU). Together, Lopez said the agreements would generate around 250,000 jobs to Filipinos.

The agreements include the MOU of Ayala and Mitsubishi for a joint venture solar rooftop project, as well as the BCDA collaboration with Hitachi Asia Ltd. and The Power Grid Solution Ltd. for feasibility studies on the Clark Green City development.

Centro Manufacturing and Nippon Freuhaf have also agreed on the production of wing van body sets for trucks.

Meanwhile, LOIs were signed by Japanese industry giants Toyota, Mitsubishi, Tsuneishi, Minebea and Ise Foods.

Meanwhile, the Department of Agri- culture (DA) said it has secured P5 billion worth of contracts for the banana industry after it signed a deal with a Japanese company that will import 20 million boxes of Cavendish bananas.

Agriculture Secretary Emmanuel Piñol said the DA and Farmind Corp. have signed an agreement for the supply of 20 million boxes of bananas annually which is expected to translate to about P5 billion.

“The signing of the agreement will mark the start of the development of about 7,000 hectares of banana farms which Farmind would like to be located in former conflict areas in the Southern Philippines,” Piñol said.

Japanese company Farmind is a subsidiary of Fresh MD Holdings Inc. that operates a fresh produce distribution network in Japan.

The deal is estimated to result in the direct employment of about 14,000 farm workers and other ancillary services.

Philippine bananas used to dominate the Japanese market, supplying as much as 90 percent of the total requirements but in recent years, bananas from Ecuador have penetrated Japan.

Currently, the Philippines only holds 75 percent of the banana supply in Japan due to lower oil prices that allowed Ecuador to bring its produce to Japan at a significantly lower transport cost.

“The entry of the Farmind supply contract, however, will once again allow the Philippines to dominate the Japan market,” Piñol said.

The Philippine Investment and Economic Forum in Japan was a success, according to Lopez, as it recorded 1,000 attendees from the Japanese business delegation and another 200 from the Philippine business delegation.

Lopez said the Philippine government is bullish in further advancing trade with and investments from Japan following the successful visit.