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    RP agri traders turning to New Zealand
    from restrictive Aussie market
    By Estrella Torres
    Reporter
     

    THE long delays in the Australian decision to completely lift the ban on Philippine tropical fruits have slowly strained trade relations between the two countries and affected private-sector decision to explore New Zealand market that offers better terms to similar products also found in Canberra, said a senior trade diplomat.

    The Australian government has imposed a ban on Philippine mangoes, pineapples and bananas in its market for almost 10 years now. So far, mangoes from Guimaras have been allowed access into the Australian market early last year, but pineapples and bananas are still banned.

    The senior trade diplomat said the government has not resorted to dispute settlement measures with the World Trade Organization (WTO) on two grounds: First, there are no sanctions to be imposed  against Australia for its continued imposition of the sanitary and phytosanitary measures known as one of the nontariff barriers; second, the lost revenues for the Philippine tropical fruits will no longer be returned to the exporters.

    “Australia will only be compelled [by the WTO] to effect trade policies by allowing access to Philippine tropical fruits,” said the senior trade diplomat who requested anonymity.

    But he said there are measures where the Philippines can “get even” and would simply hurt the Australian products getting access into the country’s market.

    At the same time, Australian ambassador to the Philippines Tony Hely maintained that his government is committed to welcoming Philippine tropical fruits into the Canberra market as soon as the pests and other disease issues on these products have been addressed.

    He said the Australian Embassy has funded two pest survey studies on Davao del Sur and Saranggani  with amount of A$250,000 and A$100,000, respectively, to determine whether these provinces can resume export of mangoes into Australia.

    Hely said there is also an ongoing import-risk assessment on Philippine bananas that would evaluate the measures taken by the Philippine exporters to address the SPS issues of Australia.

    “A draft of the risk-assessment report has been submitted to the Philippine officials for comment. After that, the report would be submitted to the Australian agriculture officials for final decision. We expect to have the final report this year or next year,” said Hely in an interview in Makati City.

    Meanwhile, pineapple products from the Philippines are now being allowed access into the Australian market if quarantine solutions like decrowning and fumigation are implemented.

    The diplomat cited that the Philippines that used to heavily import beef and dairy products from Australia is slowly exploring the New Zealand market.

    “Although the decision to import beef and dairy products from New Zealand is market-driven, the good political and trade relations between the Philippines and New Zealand have influenced private-sector decisions,” he said.

    The Filipino diplomat said that New Zealand has also been providing better terms, discounts and efficient delivery of exports to the Philippines compared with Australia.

    He said that the Philippine industries have also opted to import beef products from New Zealand because Australia for some time has suffered long delays due to reduction of beef products for exports.

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